A manufacturer of premium wire strippers has supplied the following data: Units produced and sold 580,000Sales revenue$4,176,000Variable manufacturing expense$2,871,000Fixed manufacturing expense$778,000Variable selling and administrative expense$348,000Fixed selling and administrative expense$104,000Net operating income$75,000The company's degree of operating leverage is closest to:
A. 7.73
B. 55.68
C. 12.76
D. 3.65
Answer: C
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What is productivity? Why is increasing productivity important? In the context of a specific job, preferably from your own experience, discuss at least three ways that managers can improve productivity.
What will be an ideal response?
Frieda is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio, it will be important for her to
A. use a high level of repetition. B. buy a really long time slot to get all the information in. C. be both informal and conversational in tone. D. use a quick speaker to attract attention to the commercial. E. say the restaurant's name and location three separate times.
In selling a commercial building, Birdie tells Colt that the property has a certain capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of the building, but it is not as she specifies. Colt buys the building. Refer to Fact Pattern 14-4. Under these circumstances, Colt's best course of action is most likely to A) scam Birdie
B) induce Birdie to give him the commission on her next sale. C) recover damages or rescind the contract to buy the building. D) sabotage Birdie's career with bad publicity.
An MNE has a contract for a relatively predictable long-term inflow of Japanese yen that the firm chooses to hedge by paying for imports from Canada in Japanese yen. This hedging strategy is known as:
A) a natural hedge. B) currency-switching. C) matching. D) diversification.