Any project with a profitability index below 1.0 should be accepted as this implies that the benefits exceed the costs
Indicate whether the statement is true or false
FALSE
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Understanding a company's relationships with financial institutions and bondholders is important because:
a. it can indicate the extent to which the company is leveraged. b. it can reveal whether significant short selling of the company's stock has occurred. c. it can uncover the fraudulent transactions from special purpose entities. d. it may help in raising additional funds from the financial institutions.
Marketers often have huge amounts of information about their customers. What ethical issue should marketers include in their decisions regarding how to use this information?
What will be an ideal response?
Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials$150,000 Direct labor 240,000 Variable manufacturing overhead 90,000 Fixed manufacturing overhead 120,000 Total$600,000 Assume Ortega Industries could avoid $40,000 of fixed manufacturing overhead if it purchases the component from an outside supplier. An outside supplier has offered to sell the component for $34. If Ortega purchases the component from the supplier instead of manufacturing it, the effect on income would be a:
A. $100,000 decrease. B. $10,000 increase. C. $60,000 increase. D. $140,000 increase.
A customer retention strategy focuses on how long you can keep a customer on your premises.
Answer the following statement true (T) or false (F)