Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $53,000 for the past year. Kitchen division sales for the year were $1,040,000, and its variable costs were $775,000. The fixed costs of the division were $318,000. If the kitchen division is dropped, 60% of the fixed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be:
A. $274,200 decrease
B. $74,200 decrease
C. $265,000 decrease
D. $74,200 increase
E. $265,000 increase
Answer: B
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Corner Jewelers, Inc. recently analyzed the project whose cash flows are shown below. However, before the company decided to accept or reject the project, the Federal Reserve changed interest rates and therefore the firm's cost of capital (r). The Fed's action did not affect the forecasted cash flows. By how much did the change in the r affect the project's forecasted NPV? Note that a project's expected NPV can be negative, in which case it should be rejected. Old r:8.00%New r:11.25% Year0 1 2 3 Cash flows?$1,000 $410 $410 $410
A. ?$59.03 B. ?$56.08 C. ?$53.27 D. ?$50.61 E. ?$48.08
The ________ provides a quick, efficient, and instantly interactive way to follow up a sale
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Which of the following statements best exemplifies how society as a whole benefits from ethical behavior?
a. Consumers are willing to pay more for a product they believe to be ethically produced. b. People feel better when they behave ethically. c. Unethical behavior can be very costly. d. Ethical behavior builds trust which is important in all of our relationships.
The 1987 United Nations report Our Common Future laid the groundwork for a modern understanding of
A. corporate philanthropy. B. environmentalism. C. sustainability. D. corporate volunteerism. E. consumerism.