- (Topic 1)
A company??s balance sheet information at the end of July is shown below (in$000s).
What is the company's financial leverage ratio?
Correct Answer:
A
- (Topic 1)
Willcox Company plans to sell 100 000 units of Us only product for $300 per unit to its existing customers It has received a new customer request for 10,000 units at a selling price of $2S0 per unit Willcox's cost structure is shown below.
Capacity exists lo produce an additional 10 000 units and accepting the order would have no long-term implications If the order is accepted however a specialized piece of equipment costing S25 000 would need to I purchased If Wilcox accepts the special order its income would increase by
Correct Answer:
B
- (Topic 1)
A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export. Which one of the following outcomes would not be consistent with me formation of a carter?
Correct Answer:
A
- (Topic 1)
The Transformer Division of Keller Electrical Supply IS developing its Budget for next year Preliminary estimates for the next year are as follows.
• Sales of 10.000 units
• Variable cost of $350 per unit
• Fixed costs of $800,000
. Net assets utilized on the Transformer Division are $7 million
• Target rate of return on investment required by Keller is 15%
If the Transformer Division utilizes cost-based pricing and uses a markup based on its target rate of return, what price per unit (rounded to the nearest dollar) should it use for the budget?
Correct Answer:
D
- (Topic 1)
IF a company does not have a code of conduct, the company most likely
Correct Answer:
A
