A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000Sales revenue$2,132,000Variable manufacturing expense$650,000Fixed manufacturing expense$464,000Variable selling and administrative expense$260,000Fixed selling and administrative expense$312,000Net operating income$446,000 What is the company's unit contribution margin?
A. $4.10 per unit
B. $0.86 per unit
C. $2.35 per unit
D. $1.75 per unit
Answer: C
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On January 1, 2017, the Leaf Company acquired a 5% interest in the Trunk Corporation through the purchase of 100,000 shares of Trunk's common stock for $640,000; the investment is recorded on Leaf's books as trading securities. During 2017, Trunk paid $40,000 in dividends and reported net income of $100,000. The market price of Trunk's common stock was $6.20 per share on December 31, 2017. Leaf
should report the investment in the Trunk Corporation on its December 31, 2017, balance sheet at A) $620,000. B) $627,000. C) $640,000. D) $645,000.
A measure of profit produced above the cost of capital is referred to as ___________________________________
Fill in the blank(s) with correct word
Which of the following actions is consistent with social responsibility and is not necessarily inconsistent with stockholder wealth maximization?
A. Selling a smokestack "scrubber" required by the firm's air pollution policy that is also mandated by law. B. Dumping effluent discharge into a river, where it ruins the drinking water of the community around the plant. The installation of machinery to treat the effluents is very expensive. C. Investing in a smokestack filter to reduce sulphur-dioxide emissions to decrease the tax being levied on the firm by the state for pollution it produces each year. D. Making a large corporate donation to the local community for funding a recreation complex that can be used by the firm's employees only. E. Consider taking over the competitor's business in an attempt to establish monopoly for its product in the market.
In the short-run, plant capacity is fixed and product choices have to be made that optimize the use of available capacity.
Answer the following statement true (T) or false (F)