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Which items have no after-tax consequences

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Reference no: EM132811032

Problem 1: In the analysis of a capital budgeting proposal, which of the following items have no after-tax consequences?

a. Cash flow from operations
b. Gain or loss on the disposal of the asset
c. Reduction of working capital balances at the end of the useful life of the capital asset
d. None of these answers are correct

Problem 2: In multiproduct situations, when sales mix shifts toward the product with the highest contribution margin then:

a. Total revenues will decrease
b. Breakeven quantity will increase
c. Total contribution margin will decrease
d. Operating income will increase

Reference no: EM132811032

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