If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is the probability of the last unit being sold?
A. Greater than 0.90
B. Greater than 0.25
C. Greater than 0.85
D. Greater than 0.75
E. None of these
Answer: D
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The document one business sends to another business that identifies the amount to be paid is:
a. check b. purchase requisition c. vendor invoice d. disbursement voucher
The accounts receivable turnover ratio captures the speed of cash collections from credit customers and is calculated as follows:
a. average accounts receivable divided by sales revenue. b. sales revenue divided by average accounts receivable. c. sales revenue plus average accounts receivable. d. sales revenue minus average accounts receivable. e. sales revenue times average accounts receivable.
If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using
A. outsourcing. B. sole-sourcing. C. logistics. D. wholesaling. E. distribution services.
Peacock, Inc sells 2,000 kayaks per year at a sales price of $460 per unit
It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $810,000 per year. Fixed costs are $340,000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units produced? A) $235 B) $405 C) $575 D) $170