Lovey is a shareholder of Made-2-Order Manufacturing Corporation with preemptive rights. With these rights, Lovey can
a. buy a prorated share of a new issue of stock before other buyers.
b. choose to have Made-2-Order act exclusively in a certain area.
c. "preempt" managerial decisions that affect shareholders.
d. sell a prorated share of a new issue of stock before other sellers.
A
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Which of the following statements is true?
a. The fixed asset ratio is not useful for comparing different companies. b. A smaller fixed asset turnover ratio is associated with firms that are more labor intensive and require smallerfixed asset investments. c. The fixed asset ratio cannot be compared across time for an individual company. d. A larger fixed asset turnover ratio is associated with firms that are more labor intensive and require smallerfixed asset investments.
The salary allocation to partners used in dividing net income would also appear as salary expense on the partnership income statement
a. True b. False Indicate whether the statement is true or false
The allure of the Latin American market has been its:
A) lack of inflation. B) considerable size. C) rapid economic growth. D) low foreign debt. E) protectionism.
Answer the following statements true (T) or false (F)
1. Operating leverage predicts the effects fixed costs have on operating income when sales volume changes. 2. The degree of operating leverage for Madrigal Company is 2. The actual operating income is $14,000. If the company expects a 25% increase in sales, operating income should increase by $3,500. 3. The sales mix provides the weights that make up total product sales. 4. Sales mix, or product mix, is the combination of products that make up total sales. 5. Barnes Company sells two products, X and Y. For the coming year, Barnes predicts sales of 5,000 units of X and 10,000 units of Y. The contribution margins per unit of products X and Y are $5 and $4, respectively. The weighted-average contribution margin is $6.50 per unit.