The annual break-even point of a salesperson is $2,000,000 and his per month salary is $10,000. This means that:
A. the salesperson should generate $2,000,000 gross profit every year to cover the costs.
B. the salesperson should generate $2,000,000 net profit every year to cover the costs.
C. the salesperson should generate sales worth $2,000,000 every year to cover the costs.
D. the salesperson should generate gross profit worth $80,000 to cover the costs.
E. the salesperson is generating $80,000 profit compared to his fixed cost.
Answer: C
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Long-term assets are $800, current liabilities are $500, and long-term liabilities are $600 . If the current ratio is 2.5 to 1, then current assets are
a. $200 b. $625 c. $1,250 d. $2,000
Use the following letters to represent items: P = Purchases (net) C = Cost of goods sold B = Beginning inventory E = Ending inventory Which equation is correct?
A) B ? C + P = E B) B ? E = C + P C) P ? E = B + C D) B = C ? E + P
The payback period method of evaluating an investment ignores cash inflows after the point where an investment's costs are fully recovered.
Answer the following statement true (T) or false (F)
Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of
A. width of product mix. B. product mix consistency. C. depth of product mix. D. a market mix. E. a promotion mix.