If a business had sales of $4,000,000 and a margin of safety of 20%, what was the break-even point?
A) $5,000,000
B) $3,200,000
C) $12,000,000
D) $1,000,000
B
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Which of the following industries is least likely to use direct labor hours as a cost driver?
a. A pharmaceutical Company b. An automobile company c. A construction company d. An automated manufacturing concern
Economic integration often progresses
A. in stages, totally dependent on the members' national economic strength. B. in stages, from free trade area to customs union to common market. C. in unpredictable ways due to unintended consequences. D. as a result of cultural beliefs and economic strength.
Cash flows from investing activities include all of the following except a(n):
A. sale of a trademark. B. issuance of bonds. C. purchase of stock of another company. D. purchase of an automobile.
Knoll, Inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. Knoll is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Knoll increase the price of its product?
A. Yes; profit will increase $30,000. B. No, profit will decrease $150,000. C. No, profit will decrease $30,000. D. Yes, profit will increase $150,000.