If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is the probability of the last unit being sold?
A. Greater than 0.90
B. Greater than 0.25
C. Greater than 0.85
D. Greater than 0.75
E. None of these
Answer: D
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Lynch Corporation bought a piece of machinery. Selected data is presented below: Useful life 8 years Yearly net cash inflow $48,000 Salvage value - 0 - Internal rate of return 16% Cost of capital 13% Present value tables or a financial calculator are required. The initial cost of the machinery was
a. $201,496 b. $208,493 c. $215,390 d. $230,342
A firm classifies liabilities which fall due within the operating cycle, usually one year, as
a. a current liability. b. a long-term liability. c. a noncurrent asset. d. part of shareholders' equity. e. a contingent liability.
Self-insurance simply means having no insurance.
Answer the following statement true (T) or false (F)
To exercise the rights under the Family and Medical Leave Act, an employee whose need for a leave is foreseeable must advise the employer of that need at least 60 days prior to the anticipated date on which the leave should begin
Indicate whether the statement is true or false