A company has two different products that sell to separate markets
Financial data are as follows:
Product A Product B Total
Revenue $15,000 $9,000 $24,000
Variable costs (8,000 ) (9,200 ) (17,200 )
Fixed costs (allocated) (2,000 ) (1,000 ) (3,000 )
Operating income (loss) $5,000 $(1,200 ) $3,800
Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. Because the contribution margin of Product B is negative, it should be dropped.
Indicate whether the statement is true or false
TRUE
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If you simulate the event of tossing a coin 10 times, exactly 5 of the outcomes will be heads and 5 will be tails
Indicate whether the statement is true or false
If investors require a 10% after-tax return from a firm's preferred stock and its dividend is $5.00 per share, what is the price per share assuming a marginal tax rate of 25% and no flotation costs?
A) $50.00 B) $12.50 C) $37.50 D) $18.75 E) $20.00
Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yield if held to maturity is about
A) 1.5%. B) 2%. C) 3%. D) 6%.
If we plot a continuous probability distribution f(x), the total probability under the curve is:
a. -1 b. 0 c. 1 d. 100