The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow
Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Identify the range over which each location is best.
Location
Costs A B C
Fixed $700,000 $1,000,000 $1,1000,000
Variable $28 $18 $20
A is cheapest from 0 to about 30,000 units. B is cheapest thereafter. C can never be preferred.
Break-even points Units Dollars
Location A vs. Location B 30,000 $1,540,000
Location A vs. Location C 50,000 $2,100,000
Location B vs. Location C -50,000 $100,000
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If Idaho Company has paid out more in dividends than it has had in net income, over the lifetime of the company, then the balances in the Stockholders' Equity should show:
a. a credit balance in the common stock account. b. a credit balance in the Retained Earnings account. c. a debit balance in the Common Stock account. d. a debit balance in the Retained Earnings account.
As a starting point for testing capital stock and equity transactions, which of the following should the auditor perform?
a. Trace the proceeds of stock sold to the cash receipts journal. b. Review the minutes of the board of directors meetings. c. Examine documentation maintained by the transfer agent. d. Review a copy of the client's articles of incorporation.
Causal research designs are called experiments
Indicate whether the statement is true or false
Service ________ means that services cannot be stored for later sale or use
A) consistency B) perishability C) variability D) intangibility E) inseparability