A company's flexible budget for 12,000 units of production showed total contribution margin of $24,000 and fixed costs, $16,000. The operating income expected if the company produces and sells 15,000 units is:
A. $8,000.
B. $14,000.
C. $34,000.
D. $18,667.
E. $10,000.
Answer: B
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Which of the following is not an example of an effective response to the changed environment affecting direct selling?
a. placing greater emphasis on workplace, as opposed to home-based, sales b. supplementing direct selling with Web-based sales c. reducing sales commissions to encourage direct salespeople to become more productive d. hiring community residents to gain access to developments and housing complexes that block nonresidents
The Swails have an 80 percent co-insurance policy on their $100,000 home. Explain what this means. If they have an 80 percent co-insurance clause, a policy for $80,000, and suffer a covered loss of $40,000, how much will the insurer pay? If they have an 80 percent co-insurance clause, a $60,000 policy, and suffer a loss of 25% of their property, how much will the insurer pay?
Since quota sampling is a nonprobability sampling method, the representativeness of the sample can be measured.
Answer the following statement true (T) or false (F)
The Montana Hills Co. has expected earnings before interest and taxes of $17,100, an unlevered cost of capital of 12.4 percent, and debt with both a book and face value of $25,000. The debt has an annual 6.2 percent coupon. If the tax rate is 21 percent, what is the value of the firm?
A) $91,016 B) $137,903 C) $114,194 D) $106,667 E) $146,403