Education has no effect on income potential.
True
False

Cobb Company produces 8,000 parts each year, which are used in the production of one of its products. The unit product cost of a part is $36, computed as follows: Variable production costs $16 Fixed production costs 20 The parts can be purchased from an outside supplier for only $24 each. If the part is outsourced, fixed production costs would be reduced by one-fourth. If the parts are purchased from the outside supplier, the annual impact on the company's operating income will be:

Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________. multiple choice

Consider the following list of transactions: Repay borrowing from the bank, $2,000. Pay employees' salaries of $1,500. Purchase equipment for cash, $10,000. Provide services to customers for cash, $4,500. Issue shares of common stock for cash, $5,000. Pay utilities, $1,000. Provide services to customers on account, $2,500. Sell old delivery truck for cash, $4,000. What amount would the company report for operating cash flows in the statement of cash flows

Which of the following statements is true regarding the degree of operating leverage?
A. The degree of operating leverage is irrelevant to managers when trying to understand the effect of potential changes in sales volume and the impact it might have on net operating income.
B. A decline in sales for a company with a high degree of operating leverage will result a larger decline in net operating income (NOI) compared to a company with a low degree of operating leverage.
C. A company with a high degree of operating leverage has a lower proportion of fixed costs in its cost structure compared to a company with a lower degree of operating leverage.
D. A sales increase of 10% for a company with a degree of operating leverage of 4.0 will result in a 40% decrease in net operating income.

What is the term for selling related products?

The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 602,000 $ 505,000 Variable costs 230,000 299,000 Traceable fixed costs 150,500 191,000 Allocated common corporate costs 127,600 155,000 Net operating income (loss) $ 93,900 $ (140,000) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of:

Sweet Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $56,000, (2) 10,500 shares of Munter Ltd. common stock which cost $588,000, and (3) 6,000 shares of King Company preferred stock which cost $252,000. The Fair Value Adjustment account shows a credit of $10,600 at the end of 2020.

In 2021, Parnevik completed the following securities transactions.

1. On January 15, sold 3,240 shares of Andersonâs common stock at $23 per share less fees of $2,120.
2. On April 17, purchased 1,200 shares of Castleâs common stock at $33 per share plus fees of $1,840.

On December 31, 2021, the market prices per share of these securities were Munter $64, King $40, and Castle $23. In addition, the accounting supervisor of Parnevik told you that, even though all these securities have readily determinable fair values, Parnevik will not actively trade these securities because the top management intends to hold them for more than one year.

Required:
a. Prepare the entry for the security sale on January 15, 2021.
b. Prepare the journal entry to record the security purchase on April 17, 2021.
c. Compute the unrealized gains or losses.

Suppose an economy is producing gasoline. Which of the
following will be true?

a. The marginal benefit of the 100th gallon is bigger than the marginal
benefit of the 5th gallon

b. The marginal benefit of the 100th gallon is smaller than the marginal
benefit of the 5th gallon

c. The opportunity cost of producing the 100th gallon is smaller than the
opportunity cost of the 5th gallon

Sheffield Corp. incurred the following costs for 60000 units: Variable costs $360000 Fixed costs 392000 Sheffield has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $6000 on the order, what should the unit price be

the part of the technical report should follow this sequence

If Andrew takes $10 from his wallet and deposits it into his checking account, what happens to M1 and M2?
(1 point)
A.
Both M1 and M2 increase.
B.
M1 decreases and M2 increases.
C.
Both M1 and M2 are unaffected.
D.
M1 is unaffected and M2 decreases

What are the common barriers to communication?

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 1.34, 0.88, 0.57, and 1.02, respectively. What is the portfolio beta?

Networking is an example of this section of the marketing plan.
O marketing strategy
O marketing tactic
O competitive analysis
O market analysis

As the information security officer at your organization, you are concerned that a vendor with access to your purchasing application might become compromised and act as a vector through which your systems may be attacked. You want to establish a vendor risk management process. You would most likely engage all of the following groups EXCEPT:_________

a. Procurement
b. Human Resources
c. Legal
d. Vendor Management

An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000 per year to operate, but because the centrifuge will produce a thicker "cake", the sludge hauling cost to the monofill will be $37,000 per year less than for the belt presses. The useful lives are 5 and 10 years for alternatives BFP and Cent, respectively, and the salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. Use PW evaluation to select the more economical process at an interest rate of 6% per year over (a) the LCM of lives, and (b) a study period of 8 years. Are the decisions the same?

Encouraging a customer to buy a product related to the one they were already planning to buy is known as

cross-selling
networking
referring
upselling

Diamond Boot Factory normally sells their specialty boots for $26 a pair. An offer to buy 70 boots for $18 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9 and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number. Differential per pair of boots from accepting the special order is $fill in the blank 2 .

Brett owns investment land located in Tucson, AZ. He exchanges it for other investment land. In which of the following locations may the other investment land be located and enable Brett to qualify for like-kind exchange treatment?

a. Mexico City
b. Mexico Toronto
c. Canada Paris
d. France
e. Only A and B
f. None of the above

Carolina's Hats has the following sales, payroll, and property factors: North Carolina South Carolina Sales 75.03% 22.51% Payroll 68.62% 21.28% Property 78.45% 14.56% What is Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally weighted three-factor formula and South Carolina uses a double-weighted sales factor formula

Economists Kenneth Chay and Michael Greenstone found that in the two years following the passage of the Clean Air Act of 1970, the sharp reduction in air pollution also led to a decline in infant deaths. Although this and other studies provide compelling evidence of the link between pollution and infant health, it is not clear that reductions from the much lower levels of ambient pollution today would have the same effect. Which of the following reasons could explain this?
A) The cost of pollution abatement today is much higher than it was in the 1970s. Thus, it would be far more costly to achieve the same level of benefit today as the benefit achieved in 1970.
B) When levels of pollution are high, the marginal benefit of reducing pollution also is high. It follows therefore that the benefit of reducing air pollution in 1970 would be much higher than the benefit from a proportional reduction in air pollution today when the level of pollution is much lower.
C) Today, the level of pollution is much higher. Therefore, it will take a much larger reduction in air pollution to reap benefits similar to those in 1970.
D) When levels of pollution are high, the marginal benefit of reducing pollution is low. Therefore, it was necessary to significantly reduce air pollution in 1970 before benefits could be realized. Today, when the level of pollution is much lower, such drastic measures are unnecessary.

A multinational corporation taps oil reserves in a developing country's rainforest. Which of the following is a potential positive externality resulting from this? (1 point)

a
Better knowledge of rainforest plants

b
Decreased use of local fuel sources

c
Improved roadways for moving equipment

d
Increased profits for the drilling company

According to the Florentine humanist, Leonardo Bruni, history should be studied first (after a mastery of Latin grammar) because: Group of answer choices studying the past makes it easier to understand the affairs of the current era people are doomed to repeat past mistakes understanding the past is the key to making better business decisions and gaining wealth religion is not a reliable source of wisdom and inspiration

To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales. The theater then gathered data over the following month to determine whether the price increase was profitable. Assume total costs to the theater are the same, whether the price of a ticket is $9 or $10.
In order for the ticket price to have been profitable over the month, the elasticity of demand for movie tickets must be______.
Demand curves become_____elastic in the long run. This means that the ticket price increase will likely be____profitable in the long run.

Sal’s Towing Company just purchased a new tow truck for $45,000. The company estimates a 180-month useful life with no salvage value. The annual depreciation expense is:

Chloe and Guilherme both work at the local factory producing cars. Chloe earns $22 per hour working the day shift, and Guilherme earns $25 per hour working the night shift. Chloe and Guilherme do the same job, have the same experience, and have the same level of education. This means that the a. higher-paying job has a compensating wage differential of $25 per hour. b. higher-paying job is intrinsically more attractive than the lower-paying job. c. factory is discriminating against Chloe because she is a woman. d. higher-paying job has a compensating wage differential of $3 per hour.

The regular selling price is $22 per unit. Costs are $16 per unit, which consists of $8 direct labor per unit, $3 direct materials per unit, $2 variable overhead per unit, and $3 fixed overhead per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $16. Assume that you have enough spare capacity to fulfill this special order. If you accept the special order in the short term, profit will: Group of answer choices decrease by $6,000 decrease by $3,000 increase by $6,000 increase by $3,000 remain the same

In its income statement for the year ended June 30, 2009, The Clorox Company reported the following condensed data (dollars in millions).
Selling and administrative expenses $ 715 Research and development expense $ 114
Net sales 5,450 Income tax expense 276
Interest expense 161 Other expense 46
Advertising expense 499 Cost of goods sold 3,104
Assume a tax rate of 34%.
Assume the marketing department has presented a plan to increase advertising expenses by $340 million. It expects this plan to result in an increase in both net sales and cost of goods sold of 25%.
Prepare a multiple-step income statement. (Round answers to 0 decimal places, e.g. 125.)

During its first year of operations a company recorded accrued expenses totaling $375,000 for book purposes. For tax purposes, $175,000 of the expenses are deductible during the first year of operations and $200,000 are deductible during the second year of operations. The enacted income tax rate was 21% during the first year of operations and 25% during the second year of operations. The income tax expense to be reported in the income statement for the first year of operations is: ________

Consider a market with two​ firms, Hewlett-Packard​ (HP) and​ Dell, that sell printers. Both companies must choose whether to charge a high price ​($​) or a low price ​($​) for their printers. These price strategies with corresponding profits are depicted in the payoff matrixLOADING... to the right.​ HP's profits are in red and​ Dell's are in blue. Suppose HP and Dell are initially at the​ game's Nash equilibrium. ​Then, HP and Dell advertise that they will match any lower price of their competitors. For​ example, if HP charges ​$​, then Dell will match that price and also charge ​$. What effect will matching prices have on profits​ (relative to the Nash equilibrium without price​ matching)? Assuming HP and Dell can coordinate to maximize​ profits, HP's profit will change by ​$ nothing and​ Dell's profit will change by nothing. ​(Enter either positive or negative numeric responses using​ integers.)