Which of the following statements is a method for improving net profit margin?
A. It can be improved by decreasing the net margin and lowering expenses.
B. It can be improved by increasing the gross margin and lowering expenses.
C. It can be improved by increasing the net margin and lowering sales.
D. It can be improved by decreasing the gross margin and lowering sales.
E. It can be improved by decreasing the gross margin and increasing expenses.
Answer: B
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Metro Manufacturers produces flooring material. The monthly fixed costs are $16,000 per month. The sales price per unit is $95 and variable cost per unit is $35. If Metro's managers create a CVP graph from volume levels of zero to 800 units, at what sales level (in units) will the revenue and total cost lines intersect? (Round your answer up to the nearest whole unit.)
A) 267 units B) 169 units C) 458 units D) 124 units
Cross-selling is most effective in those situations in which the:
A) purchase is product-based B) sales type is transactional C) products are similarly designed D) relationship with the customer is new E) salesperson and customer have an established relationship
How many days do employees have to decide whether or not to maintain coverage of medical, dental, or optical benefits under the Consolidated Omnibus Budget Reconciliation Act?
A) 30 days after the employee has found new employment B) 60 days after the employee has found new employment C) 30 days after their coverage would ordinarily terminate D) 60 days after their coverage would ordinarily terminate
Analysts at Tabby Fur Storage predict that the net present value of a proposed new $10 million warehouse is $1 million. How should these findings be interpreted?
A) Although NPV is positive, its value is too low for such a large expenditure and as a result, the project should be rejected. B) The project should be rejected because the NPV is less than the cost of the warehouse. C) The project should be accepted because it will add value to the firm. D) More information such as the payback period should be evaluated since the reliance on only one capital budgeting technique should be discouraged. E) The project does not meet the acceptance criteria of the NPV method and should be rejected.