Which of the following mathematical expressions is true if the net operating income of a firm is equal to zero?
A. Sales = Gross profit margin
B. Sales = Total variable costs + Total fixed costs
C. Total operating costs = Total variable costs + Total contribution margin costs
D. Total operating costs = Contribution margin
E. Contribution margin = Earnings before interest and tax
Answer: B
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Assume that the exchange rate between the euro and the pound has changed from 2 euros per pound to 3 euros per pound. We can say that the
a. euro appreciated against the pound. b. euro depreciated against the pound. c. the euro has been officially revalued. d. both the euro and the pound have appreciated.
The First United mutual fund has total assets of $45,500,000 and liabilities of $1,600,000. There are 14,200,000 shares outstanding. What is the net asset value of the fund? (Round to the nearest cent)
What will be an ideal response?
If a bank pays a check after it is given a stop-payment order and has to reimburse its customer for the improperly paid check, ________.
A. it acquires partial rights of its customer against the person to whom it originally made payment B. it acquires all the rights of its customer against the person to whom it originally made payment C. the customer to whom payment was made will retain all the rights D. it will not acquire the rights arising from the transaction on which the check was based
Scenario 5.2 Use the following to answer the questions. GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 5.2. Researchers at GE
Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the A. company sales potential. B. breakdown approach. C. market potential. D. buildup approach. E. company sales forecast.