Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:
A. a product cost that is variable with respect to the company's output.
B. a period cost that is variable with respect to the company's output.
C. a product cost that is fixed with respect to the company's output.
D. a period cost that is fixed with respect to the company's output.
Answer: D
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Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $3000 per month in fixed costs. Pegasus sells 10 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $27 per unit of variable costs, plus an increase in fixed costs of $270 per month. The current sales price of the radio is $290. The marketing manager is sure that Pegasus can charge a higher sales price for the improved version. At what sales price level would the new, improved radio begin to improve operating earnings? (Round to the nearest whole dollar.)
A) at a sales price higher than $344 B) at a sales price of $290 C) at a sales price lower than $290 D) at a sales price of $377
Psychological influences that determine where a person purchases products on a regular basis are called
A. convenience responses. B. patronage motives. C. shopping motives. D. pattern responses. E. routine decisions.
Suppose it is July 10, and the current spot price of a Microsoft share is $40 . Rank the following put options from the most valuable to the least valuable
a. September 10 Microsoft put option with a strike price of $45/share. b. September 10 Microsoft put option with a strike price of $40/share. c. September 10 Microsoft put option with a strike price of $35/share.
If we use the ?2 goodness-of-fit to test for the differences among 4 proportions, the degrees of freedom is equal to:
a. 3 c. 5 b. 4 d. None of these choices.