Itex Corporation, a marketer of Photostat products used in the graphic arts field, buys photo sensitized paper from Eastman Kodak Company, packages it with the Photostat brand name, and sells it directly to amateur photographers. In this context, Itex Corporation is most likely classified as a
A. government agency.
B. manufacturer.
C. service provider.
D. reseller.
E. industrial firm.
Answer: D
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Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: AverageCost per UnitDirect materials$6.25Direct labor$2.80Variable manufacturing overhead$1.55Fixed manufacturing overhead$2.40Fixed selling expense$0.50Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.50 If 5,000 units are sold, the variable cost per unit sold is closest to:
A. $12.10 B. $13.00 C. $15.40 D. $10.60
Coffie Corporation has provided the following information concerning a capital budgeting project: Tax rate 30%Expected life of the project 4 Investment required in equipment$160,000 Salvage value of equipment$0 Annual sales$440,000 Annual cash operating expenses$310,000 The company uses straight-line depreciation on all equipment.The total cash flow net of income taxes in year 2 is:
A. $103,000 B. $130,000 C. $90,000 D. $75,000
Albina Kravitz is the payroll administrator for Exity Enterprises. Because of economic conditions, her boss has assigned her the additional duties of office management, and Albina is considering outsourcing her payroll duties. What are the pros and cons of outsourcing the company’s payroll?
What will be an ideal response?
According to the CAPM, what is the expected market return given an expected return on a security of 15.8%, a stock beta of 1.2, and a risk-free interest rate of 5%?
A. 5% B. 9% C. 13% D. 14%