A target return figure of zero implies
A. setting a price at which competition will be zero.
B. setting a price level that will just recover costs.
C. setting a price that helps attain previous year's high profitability.
D. setting a price that would match the industry standard profit margin.
E. setting negligible sales targets.
Answer: B
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Franklin Company is a medium-sized manufacturer of bicycles. During the year a new line called "Radical" was made available to Franklin's customers. The break-even point for sales of Radical is $250,00 . with a contribution margin ratio of 40 percent. Assuming that the profit for the Radical line during the year amounted to $80,000 . total sales during the year would have amounted to:
a. $450,000. b. $420,000. c. $400,000. d. $475,000.
On July 1 . 2014, Saunter issued 2,000 of its 8 percent, $1,000 bonds for $1,752,000 . The bonds were issued to yield 1 . percent. The bonds are dated July 1 . 2014, and mature on July 1 . 2024 . Interest is payable semiannually on January 1 and July 1 . Using the effective-interest method, how much of the bond discount should be amortized for the six months ended December 31 . 2014?
a. $15,200 b. $12,400 c. $9,920 d. $7,600
Retailers are frequently found in business product channels.
Answer the following statement true (T) or false (F)
A firm's cash position would most likely be helped by
A) more liberal credit policies for their customers. B) holding larger inventories. C) delaying payment of accounts payable. D) purchasing land for investment purposes.