It is usually easier to change marketing channels than to change prices or promotion.
Answer the following statement true (T) or false (F)
False
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Emerging economies pose exceptional risks due to their political and economic volatility and their relatively underdeveloped institutional systems.
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It is extremely difficult to estimate the revenues and costs associated with large, complex projects that take several years to develop. This is why subjective judgment is often used for such projects along with discounted cash flow analysis.
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Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super TotalUnits 10,000 3,700 13,700 Sales revenue$240,000 $740,000 $980,000 Less: Cost of goods sold 180,000 481,000 661,000 Gross Margin$60,000 $259,000 $319,000 Less: Selling expenses 60,000 134,000 194,000 Operating income (loss)$0 $125,000 $125,000 Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed.Omar Industries wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by
10% because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued? A. $10,400 increase. B. $20,000 increase. C. $39,600 decrease. D. $0. E. None of the answers is correct.
Personal creditors of one partner can force the sale of specific pieces of partnership property
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