The weighted average cost of capital represents the
a. cost of bonds, preferred stock, and common stock divided by the three sources.
b. equivalent units of capital used by the organization.
c. overall cost of capital from all organization financing sources.
d. overall cost of dividends plus interest paid by the organization.
C
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Answer the following statements true (T) or false (F)
1. Contribution margin is the difference between net sales revenue and variable costs. 2. Contribution margin is the amount that contributes to covering variable costs. 3. Steadigen Company sells two generators—Model A and Model B—for $454 per unit and $396 per unit, respectively. The variable cost of Model A is $408 per unit and of Model B is $314 per unit. If Steadigen Company's sales incentives reward sales of the goods with the highest contribution margin per unit, the sales force will be motivated to push sales of Model A more aggressively than Model B. 4. Resolute Company sells two generators—Model A and Model B—for $456 per unit and $394 per unit, respectively. The variable cost of Model A is $406 per unit and of Model B is $304 per unit. The company will generate lower revenues but a higher net income if it sells more of Model B than Model A. 5. If the sales price of Product X is $24.00 per unit and unit fixed cost is $7.50, its contribution margin per unit is $16.50.
Explain the steps involved in analyzing your message
What will be an ideal response?
The consolidated income statement shows
a. all of the parent's and the subsidiary's revenues less all of the parent's and the subsidiary's expenses, plus or minus intercompany sales, expenses, gains, and losses, which equals consolidated income. b. the portion of this consolidated income to which the noncontrolling shareholders have a claim, typically an amount equal to the subsidiary's net income multiplied by the noncontrolling shareholders' ownership percentage. c. the portion of this consolidated income to which the parent company shareholders have a claim. d. all of the above e. none of the above
Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost
a. reduction. b. control. c. containment. d. avoidance.