Dane Company has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be:
A. $44.
B. $36.
C. $4.
D. an amount that cannot be derived based on the information presented.
E. an amount other than $4, $36, or $44, but one that can be derived based on the information presented.
Answer: B
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Monro Inc. uses the accrual method of accounting. Here is a reconciliation of Monro's allowance for bad debts for the current year.Beginning allowance for bad debts?$ 61,150??Actual write-offs of accounts receivable during the year?(80,000)?Addition to allowance? 88,500??Ending allowance for bad debts?$ 69,650??Because of the difference between the GAAP and the tax rules for accounting for bad debts, Monro Inc. has an:
A. $8,500 permanent excess of taxable income over book income. B. $8,500 temporary excess of taxable income over book income. C. $8,500 temporary excess of book income over taxable income. D. $8,500 permanent excess of book income over taxable income.
The four-fifths rule applies when the number of employees from a protected class is less than four-fifths of the number of employees hired from the class with the highest selection rate.
Answer the following statement true (T) or false (F)
SouthFace Corporation just named Chloe Perry to a marketing management position. One of the reasons she accepted a position with this company was its reputation for market-oriented long-range planning. SouthFace Corp. is probably operating in the ________ era.
A. planning B. marketing department C. marketing research D. marketing company E. None of these answers is correct.
The net method of recording purchases refers to recording:
A. Inventory at the lower of cost or market. B. Purchases at the full invoice price, without deducting any cash discounts. C. Specified amounts and timing of payments that a buyer agrees to in return for being granted credit. D. Inventory at its selling price. E. Purchases at the invoice price less any cash discounts.