Repeat the Spuds and Suds Income Statement example from Chapter 7 with the following assumptions: price per unit and fixed costs are expected to increase by an average annual rate of inflation of 2%. Also assume that variable costs as a percent of sales will remain constant at 65%. Finally, suppose that Spuds and Suds is a firm in the early stage of business, and that unit sales are projected to grow at a rate of 20%, 15%, 10% and 5% for 2018-2021 respectively.
a) Create an income statement using the assumptions explained above.
b) Calculate the operating break-even point in both units and dollars.
c) How many units would Spuds and Suds need to sell in order to achieve earnings, before interest and taxes of $900,000?
d) Calculate the degree of operating, financial, and combined leverage for each year.
e) Create a chart that shows how the various leverage measures have changed over this five-year period.
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Romano, a shareholder of Specific General Inc., wishes to communicate with other shareholders concerning matters related to the corporation. So he requests the management to provide him with a list of all shareholders of the corporation. Citing administrative burden, the management informed Romano that shareholders could not review such records. The management turns down repeated requests citing the same reason. In this scenario, Romano:
A. should appeal for amendment of the corporation's laws to make public all shareholder information. B. can bring suit to enforce his right to examine the shareholder list as he has proper purpose. C. cannot hold Specific General liable because the Model Business Corporation Act (MBCA) discourages the disclosure of shareholder information. D. will be penalized 10 percent of value of his shares if he loses an appeal against the management.
_____ is defined as the process of checking a revised draft to make sure it meets the criteria of the six Cs of communication
Fill in the blank(s) with correct word
Bloomberg LP, in partnership with the National Conference on Citizenship and Points of Light, has created a scorecard of America's top community-minded companies which they call the
A. Civic 50. B. Significant 100. C. Ethical 50. D. Responsible 100. E. Noteworthy 50.
In the context of creating and delivering successful verbal presentations, which of the following is a tip for dynamic delivery?
A. Slow down and listen to yourself. B. Memorize the material word for word. C. Avoid looking directly at the audience at any point during your delivery. D. Keep your voice and facial expressions the same throughout the delivery.