If a company had a pure variable cost structure, what would be the relationship between contribution margin and net income, and what would be the magnitude of operating leverage?
What will be an ideal response?
Answers will vary
Contribution margin and net income would be equal. In other words, every dollar of contribution margin would be a dollar of profit. Magnitude of operating leverage would be 1.0 (which really means the absence of operating leverage) because the company would have no fixed costs. Net income would equal contribution margin.
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Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.Direct material cost per unit of G2$7 Total estimated manufacturing overhead$787,500 Total cost per unit of G2$22 Total estimated direct labor hours 450,000DLHDirect labor cost per unit of G2$4.25
A. 11.25 DLH per unit of G2. B. 9.3 DLH per unit of G2. C. 6.14 DLH per unit of G2. D. 1.75 DLH per unit of G2. E. 0.66 DLH per unit of G2.
Jerrold Williams buy a car for personal use on credit from Junk Yard Dog Auto Sales. Jerrold gives JYD Auto Sales a promissory note for the value of the car. The note is marked "customer note". JYD assigns the note to Sure Finance
The car is defective and Jerrold refuses to pay Sure Finance. It sues him on the note. Which of the following is TRUE? A) As a promissory note is a negotiable instrument, Jerrold cannot set off the cost of the car repair against a claim on the note. B) Because the promissory note is marked as part of a consumer transaction, Jerrold can set up the cost of repairing the defects against the amount owing on the note. C) Because Sure Finance is a holder in due course, the cost of repair cannot be set up against its claim on the note. D) Because this was a consumer transaction and Jerrold did not receive independent legal advice, Sure Finance cannot sue him on the note. E) Both A and C
Critically discuss the proposition that reputation is more important for long-term strategic distinctiveness than product brands
What will be an ideal response?
Arnie is a member of Bowling & Billiards, LLC. Arnie can participate in the firm's management? A) only to the extent that he assumes liability for the firm's debts
B) only to the extent of his investment in the firm. C) to any extent. D) to no extent.