You have been provided with the following information: TotalSales$90,000Less variable expenses 54,000Contribution margin 36,000Less fixed expenses 24,000Operating profit$12,000If sales increase by 10%, what level of fixed costs will yield a 20% increase in profits?
A. $26,400.
B. $14,400.
C. $19,200.
D. $25,200.
Answer: D
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Which of the following symbols represents the standard deviation of the population?
A. ?2
B. ?
C. ?
D. 
Answer the following statements true (T) or false (F)
1. During annual inventory week, a department store may ask its employees to work 12 hours a day instead of the usual 8. During tax-preparation time, the store's accounting department may work similar hours. Although accounting employees are in a different department from stockroom and sales employees, it's reasonable to expect that the accounting employees wouldn't be terribly upset by the temporary change in hours because they've seen it in effect elsewhere in the store. This is an example of innovative change. 2. An example of innovative change is a department store deciding to adopt a new practice used by competitors by staying open 24 hours a day and requiring employees to work flexible schedules, a change that employees are likely to see as moderately threatening. 3. Adaptive change is the least threatening type of change and is therefore least likely to create resistance. 4. Corporate restructurings threaten to eliminate jobs and generally trigger strong resistance.
On January 1, SaLow Company enters into a contract to provide custom-made equipment to ByHi Corporation for $100,000. The contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. The contract specifies a delivery date of March 15 but the equipment was not delivered until April 10. The contract required full payment within 30 days after
delivery. When should revenue be recognized for this contract? A) Never, because it includes a termination agreement. B) March 15 C) April 10 D) May 10
Lack of mutual agency is best described as which of the following?
A) The liabilities of the corporation cannot be extended to the personal assets of the stockholder. B) Shares of stock can be readily purchased and sold by investors on an organized stock exchange. C) Stockholders are not authorized to sign contracts or make business commitments on behalf of the corporation. D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends.