After the break-even point is reached, each dollar of contribution margin is a dollar of before-tax profit
Indicate whether the statement is true or false
T
You might also like to view...
Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except:
A) Asia is home to 500 million consumers aged 16 and younger. B) India has more than half of the population younger than 25. C) Consumers that buy Porsches would like to be noticed. D) The United States is home to 28.4 million foreign-born residents with combined income of $ 233 billion. E) In the EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.
Why is fraud detection an important part of the audit?
a. Auditors are required to seek out and find all fraud, regardless of its magnitude. b. Auditors expect that management will make them aware of any fraud in the financial statements. c. Society expects that financial statements have not been materially misstated due to fraud. d. Society realizes that some fraud was not intended to be discovered by auditors.
The recognition issue deals with when a user of financial statements should use accounting information
Indicate whether the statement is true or false
A buyer for a large sporting goods store chain must place orders for professional footballs with the football manufacturer six months prior to the time the footballs will be sold in the stores. The buyer must decide in November how many footballs to order for sale during the upcoming late summer and fall months. Assume that each football costs the chain $45. Furthermore, assume that each pair can be sold for a retail price of $90. If the footballs are still on the shelves after next Christmas, they can be discounted and sold for $35 each. The probability distribution of consumer demand for these footballs (in hundreds) during the upcoming season has been assessed by the market research specialists and is presented below. Finally, assume that the sporting goods store chain must purchase
the footballs in lots of 100 units. Demand (in hundreds) Probability 4 0.30 5 0.50 6 0.20 (A) What is the payoff if the store orders 400 footballs and quantity demanded is 400 footballs? (B) What is the payoff if the store orders 400 footballs and quantity demanded is 500 footballs? (C) What is the payoff if the store orders 400 footballs and quantity demanded is 600 footballs? ?(D) What is the payoff if the store orders 500 footballs and quantity demanded is 400 footballs? ?(E) What is the payoff if the store orders 500 footballs and quantity demanded is 500 footballs? ?(F) What is the payoff if the store orders 500 footballs and quantity demanded is 600 footballs? ?(G) What is the payoff if the store orders 600 footballs and quantity demanded is 400 footballs? ?(H) What is the payoff if the store orders 600 footballs and quantity demanded is 500 footballs? ?(I) What is the payoff if the store orders 600 footballs and quantity demanded is 600 footballs? What will be an ideal response?