Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $10,000 per month. Victory sells 700 units per month at a sales price of $310. If the quality of the tire is upgraded, the company believes it can increase the sales price to $350. If so, the variable cost will increase to $230 per unit, and the fixed costs will remain the same. If Victory decides to upgrade, how will it affect operating income?
A) Operating income will decrease by $21,000.
B) Operating income will decrease by $7000.
C) Operating income will increase by $7000.
D) Operating income will increase by $21,000.
D) Operating income will increase by $21,000.
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Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is
A) $700,000 B) $600,000 C) $580,000 D) $620,000
Weller, Inc
provided the following particulars for 2017: Cost of Goods Sold (Cost of sales) $1,000,000 Beginning Merchandise Inventory 335,000 Ending Merchandise Inventory 600,000 Calculate the average number of days that inventory was held by . during 2017. (Assume 365 days in a year. Round your intermediate calculations and final answer to two decimal places.) A) 341.12 days B) 218.56 days C) 122.07 days D) 170.56 days
Which of the following statements is TRUE?
A) Preferred stock usually has a stated or par value and, like bonds, this par value is not repaid at maturity because preferred stocks do not have a maturity date. B) The par value for preferred stock, unlike bonds, is never paid back. C) A preferred stock's cash dividend due each year is based on the stated dividend rate times the market value of the stock. D) Some preferred stocks are cumulative with respect to dividends, meaning that if a company skips a cash dividend, it must pay it at some point in the future.
An example of stakeholder preference within the framework of Jonker and DeWitt’s “four levers” would be _____________
a. suppliers can be empowered by using corporate clout to ensure access to resources. b. suppliers can use corporate clout to ensure access to CR programs. c. suppliers can be empowered by providing additional training or using corporate clout to ensure access to resources. d. customers can be empowered through purchasing power to ensure access to resources.