Pascal Corporation manufactures numerous products, one of which is called Gamma66. The company has provided the following data about this product: Unit sales (a) 100,000 Selling price per unit$51.00 Variable cost per unit 34.00 Contribution margin per unit (b)$17.00 Total contribution margin (a) x (b)$1,700,000 Traceable fixed expense 1,570,000 Net operating income$130,000 ?Management is considering decreasing the price of Gamma66 by 4%, from $51.00 to $48.96. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 100,000 units to 110,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Gamma66 earn at a price of $48.96 if this sales forecast is correct?
A. $1,496,000
B. $75,600
C. $1,645,600
D. $(74,000)
Answer: B
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Texas Inc has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31 . What is the annual dividend on the preferred stock?
a. $75 per share b. $75,000 in total c. $10,000 in total d. $0.75 per share
Wilma locked herself in the trunk of a 1973 sedan in an attempt to learn a magic trick. After some time, she decided to get out of the trunk, but was unable to do so. She was released nine days later. She subsequently sued the manufacturer of the sedan for the psychological and physical injuries she sustained because the trunk did not have an internal release or opening mechanism that would have allowed her to escape. She alleged that the manufacturer was negligent in its design of the car because it lacked such a mechanism, and negligent because it failed to warn users that the trunk did not have such a mechanism. In this scenario, was the manufacturer of the sedan negligent for failing to warn, or failing to include a release mechanism in its design of the car?
What will be an ideal response?
Given that sales jobs offer higher nonfinancial rewards than most other areas of corporate America, the compensation of salespeople is typically lower than that of workers in areas like production and personnel who are at a comparable level in the organization.
Answer the following statement true (T) or false (F)
Which of the following best describes a collector?
a. A person who posts comments, ratings, and reviews of products and services on blogs and forums b. A person who produces content for blogs, Web sites, articles, and videos c. A person who uses RSS feeds to gather information and vote for Web sites online d. A person who posts status updates on social networking sites and microblogging services