Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total CompanyWestern Division Eastern DivisionSales$406,000$188,000 $218,000 Variable expenses 111,880 63,920 47,960 Contribution margin 294,120 124,080 170,040 Traceable fixed expenses 191,000 85,000 106,000 Segment margin 103,120 39,080 64,040 Common fixed expenses 69,020 31,960 37,060 Net operating income$34,100$7,120 $26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The Western Division's break-even sales is closest to:
A. $233,364
B. $358,929
C. $177,212
D. $128,788
Answer: D
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A pricing tactic in which a firm prices products a few cents below the next dollar amount is called
A. perceived pricing. B. bargain pricing. C. odd pricing. D. deal pricing. E. even pricing.
Firm M's earnings and stock price tend to move up and down with other firms in the S&P 500, while Firm W's earnings and stock price move counter cyclically with M and other S&P companies. Both M and W estimate their costs of equity using the CAPM, they have identical market values, their standard deviations of returns are identical, and they both finance only with common equity. Which of the following statements is CORRECT?
A. M should have the lower WACC because it is like most other companies, and investors like that fact. B. M and W should have identical WACCs because their risks as measured by the standard deviation of returns are identical. C. If M and W merge, then the merged firm MW should have a WACC that is a simple average of M's and W's WACCs. D. Without additional information, it is impossible to predict what the merged firm's WACC would be if M and W merged. E. Since M and W move counter cyclically to one another, if they merged, the merged firm's WACC would be less than the simple average of the two firms' WACCs.
Because signal loss is more likely to occur upstream than downstream, asymmetric services compensate by using slower upstream speeds than downstream speeds
Indicate whether the statement is true or false
Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting: Fixed element per month Variable element per client-visitRevenue $44.50Personnel expenses$26,100 $12.60Medical supplies 600 7.20Occupancy expenses 6,500 2.40Administrative expenses 3,100 0.10Total expenses$ 36,300 $ 22.30Actual results for September: Revenue$93,240 Personnel expenses$50,754 Medical supplies$15,328 Occupancy expenses$11,646 Administrative expenses$3,394 The spending variance for occupancy expenses in September
would be closest to: A. $106 U B. $10 U C. $106 F D. $10 F