Last year Emery Industries had $450 million of sales and $225 million of fixed assets, so its Fixed Assets/Sales ratio was 50%. However, its fixed assets were used at only 65% of capacity. If the company had been able to sell off enough of its fixed assets at book value so that it was operating at full capacity, with sales held constant at $450 million, how much cash (in millions) would it have generated?
A. $66.94
B. $78.75
C. $63.00
D. $74.81
E. $75.60
Answer: B
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When a buying division elects to purchase from an outside supplier,
A) the impact on overall company profits is usually not considered in the decision. B) only fixed costs should be included in the decision analysis. C) the price from the outside supplier is likely to be more than the incremental cost to the supplying division. D) overall company profits should be enhanced.
Magnum Corporation had 60,000 of its $3 par common stock issued before its recent 3-for-1 stock split. The market price of the stock was $30 per share before the split. Which of the following is true as a result of the split?
A) There were 20,000 shares of common stock issued after the split. B) The balance in the common stock account increased to $180,000. C) The market price of the stock was not affected. D) The par value of the stock decreased to $1 per share.
A new product to reduce cholesterol is on the market, with a price that is higher than that of competitors. Where should a writer or speaker introduce price in his or her sales message?
a. At the beginning, as an intention getter b. Late in the message, associated with benefit c. As the final thought of the message to prompt action d. Nowhere in the message
If an activity has a late start time of 10 and an early start time of 10, what is the activity’s slack time?
a. 2 b. 0 c. -2 d. Cannot be determined from the information given