Reference no: EM132894044

Problem 1: A company provides the information below. If the company increases its selling price by 5% and increases its fixed costs by $ 100,000, how much more (or less) profit will the company realize?

Revenue $ 2,500,000
Total variable costs $ 1,700,000
Total fixed costs $ 700,000

a) Profit will increase $ 25,000
b) Profit will decrease $ 25,000
c) Profit will decrease $ 50,000
d) Profit will increase $ 50,000

Problem 2:  Break- even point is the level of production where revenue equals ____________ costs.

Problem 3:  Which of the following is an inventory management tool?

a) Records management
b) Just- in- time
c) Trades management
d) Aging of inventory

Problem 4: The SWOT analysis helps to diagnose a company's internal budgets and external plans.

a) True
b) False

Problem 5: Depreciation expense is usually considered a fixed cost.

a) False
b) True