The capital intensity ratio is the amount of assets required per dollar of sales and it has a major impact on a firm's capital requirements.
Answer the following statement true (T) or false (F)
True
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Blenham, Inc sells merchandise on credit. If a customer pays its balance due after the discount period has passed, what is the effect of the payment on Blenham's accounting equation?
a. Assets and stockholders' equity decrease. b. Assets and stockholders' equity increase. c. Assets decrease and liabilities increase. d. No net effect.
________ is the segmentation method that uses multiple variables to identify customers in the target segment according to their benefits sought, lifestyles, and demographics.
A. Hedonic need identification B. Multiattribute model C. Composite segmentation D. Buying situation segmentation E. Trickle-down approach
Bella, Inc. manufactures two kinds of bags—totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,250. Additional estimated information is given below.
Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)
A) 101.00%
B) 50.15%
C) 100.40%
D) 1.51%
Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows: January 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The
planned selling price is $150 per unit. What would be the sales budget for March? a. $7,200,000 b. $8,000,000 c. $6,750,000 d. $9,000,000