Break-even analysis is used to assess

a. expected capital expenditures.
b. revenue.
c. expected product profitability.
d. future sales.


ANSWER: c

Business

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Large ISs that address structured problems are usually conceived, planned, developed, and maintained within a framework called the _____.

A. enterprise application integration (EAI) B. rapid application development (RAD) C. systems development life cycle (SDLC) D. application lifecycle framework (ALF)

Business

Samson Inc. is contemplating the purchase of a machine that will provide it with net after-tax cash savings of $100,000 per year for 8 years. Assuming a 10% discount rate, calculate the present value of the cash savings.

What will be an ideal response?

Business

On July 1 . Crimson Corporation had 200,000 shares of $10 par common stock outstanding. The market price of the stock was $12 per share. On the same date, Crimson declared a 1-for-2 reverse stock split. The par value of the stock was increased from $10 to $20, and one new $20 par share was issued for each two $10 par shares outstanding. Immediately before the 1-for-2 reverse stock split,

Crimson's additional paid-in capital was $650,000 . What should be the balance in Crimson's additional paid-in capital account immediately after the reverse stock split? a. $450,000 b. $650,000 c. $850,000 d. $1,050,000

Business

Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. The correct entry along with the equation to record the issuance and usage of materials, assuming a favorable materials usage variance, is as follows

A) Work in Process SQ x SPMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP B) Work in Process SQ x SPMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP C) Work in Process AQ x APMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP D) Work in Process AQ x APMaterials Usage Variance (AQ-SQ)SPMaterials AQ x SP E) None of these.

Business