Macy Corporation's relevant range of activity is 5100 units to 11,500 units. When it produces and sells 8300 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$5.00?Direct labor$3.45?Variable manufacturing overhead$1.45?Fixed manufacturing overhead$3.80?Fixed selling expense$1.40?Fixed administrative expense$0.95?Sales commissions$1.35?Variable administrative expense$0.85??If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:
A. $9.90
B. $14.90
C. $18.55
D. $7.25
Answer: B
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Macumber Corporation has two operating divisions--an Atlantic Division and a Pacific Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $38 per shipment. The Logistics Department's fixed costs are budgeted at $451,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak Period Capacity RequiredActual ShipmentsAtlantic Division 35?% 1810? Pacific Division 65?% 4690? How much Logistics Department cost should be charged to the Atlantic Division at the end of the year for performance evaluation purposes?
A. $243,800 B. $226,630 C. $331,685 D. $196,835
A commercial software system that is completely finished, tested, and ready for implementation is called a
a. backbone system b. vendor-supported system c. benchmark system d. turnkey system
Stock X has a beta of 0.7 and Stock Y has a beta of 1.7. Which of the following statements must be true, according to the CAPM?
A. Stock Y's realized return during the coming year will be higher than Stock X's return. B. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount. C. Stock Y's return has a higher standard deviation than Stock X. D. If the market risk premium declines, but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y. E. If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated.
Cash and Equivalents are $1,561, Short-Term Investments are $1,052, Accounts Receivables are $3,616, Accounts Payable is $5,173, Short-Term Debt is $288, Inventories are $1,816, Other Current Liabilities are $1,401, and Other Current Assets are $707. What are the Total Current Assets?
A) $8,752 B) $6,936 C) $6,862 D) $5,136