Target profit is the negotiated profit in a contract assuming the target cost is met

Indicate whether the statement is true or false


TRUE

Business

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Poe Company is considering the purchase of new equipment costing $80,000. The projected annual cash inflows are $30,200, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine. PeriodsPresent Valueof $1 at 10%Present Value of anAnnuity of $1 at 10%1 0.9091  0.9091 2 0.8264  1.7355 3 0.7514  2.4869 4 0.6830  3.1699 

A. $15,731. B. $(4,896). C. $4,896. D. $32,334. E. $(15,731).

Business

A favorable sales volume variance in sales revenue suggests a(n) ________

A) increase in actual sales price per unit as compared to budgeted sales price B) increase in number of actual units sold when compared to the expected number of units sold C) increase in actual variable cost per unit as compared to expected variable cost per unit D) decrease in actual fixed costs

Business

Segmenting a broad product-market usually requires using several segmenting dimensions at the same time.

Answer the following statement true (T) or false (F)

Business

A simplex tableau is shown below.



a. What variables form the basis?
b. What are the current values of the decision variables?
c. What is the current value of the objective function?
d. Which variable will be made positive next, and what will its value be?
e. Which variable that is currently positive will become 0?
f. What value will the objective function have next?

Business