Multiple choice question on basic finance

Assignment Help Finance Basics

Reference no: EM1349500

3. Norville Creations wants to achieve an after-tax profit of $45,000 for the year ended December 31, Year 1. The company sells its product for $35 per unit and has a contribution margin ratio of 15%. the company's fixed costs are currently $150,000 and its tax rate is 25%. How many units must Norville selll to achieve its after-tax profit objective?

a. 11,092
b. 37,143
c. 40,000
d. 62,857

4. Excalibur Corporation has developed a model to predict sales revenue for its line of beach towels and swimwear based on long-range weather forecasts. The sale of the line is positively correlated with mean temperature and the probability of the occurence of a particular range of mean temperatures, which is developed independently by the National Weather Service. The probability of mean temperature and realted sales of product line units are asd indicated below for the month of July:

Unit sales Temperature Probability
10,000 75-79 5%
30,000 80-84 25
50,000 84-87 50
40,000 87-89 15
25,000 over 90 5

What sales volume, in units, would Excalibur Corporation anticipate using the expected value approach?

a. 31,000
b. 40,250
c. 50,000
d. 155,000

5. Controllable margin is used as a refined measure of strategic business unit reporting that is best described as:

a. Margins reported to strategic business unit managers realted to the revenues and costs specifically within the managers control and responsibility.
b. contribution margin net of controllable fixed xcosts (those costs that managers can impact in less than one year.)
c. Margins exclusively focused on entirely direct costs.
d. Margins derived after comprehensive consideration of all costs designed to achieve strategic objectives.

Reference no: EM1349500

Questions Cloud

Explain as they inconsistent with each other : In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.

Limited scope as opposed to one of major scope : Organizational Change - How would the scope of change?

Calculate the heat flow through a 0.750m long copper bar : How many kilograms of water at 100.0 C could be converted to steam by the addition of 1.13 x 10^7 joules of thermal energy.

Elements of manufacturing cost : Group the costs of manufacturing candles. Indicate whether each of the following items should be classified as direct materials (DM), direct labor (DL), overhead (O), or none of these (N). Also indicate whether each is a prime cost (PC), a convers..

Multiple choice question on basic finance : Norville Creations wants to get an after-tax profit of $45,000 for the year ended December 31, Year 1. The corporation sells its product for $35 per unit and has a contribution margin ratio of 15 percent.

Business environment impacted development telecommunication : Describe in scholarly detail how business environment has influenced development of telecommunications technology.

Testing prior to the hiring method : Recent hiring trends in business include giving personality and interest tests prior to hiring. The stated purpose of administering these tests is to eliminate subjectivity from the hiring process and place all candidates on equal footing.

Determining product cost system : Assuming I own a wedding invitation printing company. I would need information to budget next years activities. Which costs are likely to be available in the company's product costing system?

Explain the primary functions of an operating system : Write a message for Simon that briefly summarizes, in your own words and Explain the primary functions of an operating system.

User Account

All Pages