Marcos Company annual sales are $730 million. Suppose Marcos can reduce the time required to process customer payments by 3 days through more efficient payment processing techniques. Given that any funds released by these methods can be invested elsewhere in the company to yield a 15% pretax rate of return, determine the annual increase in pretax returns. (Assume 365 days per year in all
calculations.)
A) $900,000
B) $300,000
C) $6,000,000
D) Cannot be determined from the information provided
A
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Which of the following market research techniques requires that researchers personally
experience the lives of consumers in order to understand them better? A) ethnographic research B) focus groups C) surveys D) observational research
Cake Lady Bakery is famous for its frosted fruit cake
The main ingredient of the cake is dried fruit, which Cake Lady purchases by the pound. In addition, the production requires a certain amount of direct labor. Cake Lady uses a standard cost system, and at the end of the first quarter, there was an unfavorable direct labor cost variance. Which of the following is a logical explanation for that variance? A) The cost of workers' medical insurance plans jumped up dramatically during the quarter. B) The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of direct materials during their training period. C) The purchasing manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard. D) The production staff changed the work flow process so that production required fewer direct labor hours.
Metro City operates its own municipal public drinking water system for which the Environmental Protection Agency has set maximum levels of pollutants. Metro does not use any equipment to meet these standards. With regard to any contamination of the water, under the Safe Drinking Water Act, this is most likely
a. a violation. b. not a violation because Metro does not set the standards. c. not a violation because water is not a stationary source. d. not a violation because Metro does not use any equipment.
Trella purchased a $1,200 piano on credit from the Corbett Company, signing a security agreement. Months later, Trella missed one payment. Corbett repossessed the piano and billed Trella for the balance of $300 . Trella claimed that the piano was worth more than $300 and asked Corbett to sell it and return any excess money to her. Corbett refused. Was Corbett correct to refuse?