Byron Corporation forecasts that its income willbe $21,000 next year. The firm pays out 30 percent of earnings as dividends to common stockholders.Its target capital structure is 40 percent debt and 60 percent common equity. What Byron's retained earnings break point?
A. $35,000
B. $24,500
C. $6,300
D. $36,750
E. $10,500
Answer: B
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Indicate whether the statement is true or false.
Which of the following statements regarding budgeting is false?
A) The focus of budgeting is planning. B) Many companies use enterprise resource planning (ERP) systems as a budgeting tool. C) Budgeting is a bookkeeping task. D) Budgeting helps managers determine the resources needed to meet their goals and objectives.
Which of the following characteristics does not usually apply to process operations?
A. Each unit of product is separately identifiable. B. Costs are computed using equivalent units. C. Partially completed products are transferred between processes. D. A separate Work in Process Inventory is used for each process. E. Each process is a separate department.
Mantel Incorporated began producing its new line of dolls at its Connecticut plant in December of year 0. In year 1, it produced 30,000 dolls at a total cost of $385,000
In year 2, its production increased to 80,000 dolls at a total cost of $885,000. Assuming the cost structure was the same for both years, what must be the variable cost (c) and the fixed cost (F) per doll? A) F is less than $80,000, and c is greater than $7. B) F is greater than $60,000, and c is less than $5. C) F is less than $100,000, and c is greater than $9. D) F is greater than $110,000, and c is less than $6.