Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Question
A common planning horizon for production
activities is
a. one day.
b. a week.
c. a month.
d. six months.
e. one year.
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- Let's say the following numbers are available after an analysis, what is the CTO? (contribution to overhead) Sales = $ 1.00 Variable costs = 0.8964 What is the CTO? This means the amount that can be applied. to overhead after all variable costs are paid. This was calculated as a % of sales. 7. Calculate breakeven point. How many units (dollars) of sales are needed to completely cover all costs? Breakeven = Fixed costs_ Sales dollars) 1.0 Variable costs as a portion of net sales Breakeven = Fixed Costs. Selling price per unit - variable cost per unit Fixed costs are $1,149,722. CTO figure from above. Calculate the breakeven sales volume in dollars Write your answer here. (Sales units)arrow_forward13arrow_forward29) Which of the following Capital Budgeting Method used to calculate using the condition of NPV being 0 for a project? a. None of the options b. Internal Rate of Return c. Accounting Rate of Return d. Payback periodarrow_forward
- 9 A company had tax-deductible cash expenses of $900,000 last year, and the tax rate was 25%. What was the after-tax net cash outflow for these expenses? Select one: a. $675,000. b. $650,000. c. $390,000. d. $195,000.arrow_forwardAspen Company has sales of $2,000,000, cost of goods sold of $200,000, and selling and administrative costs of $500,000. Aspen Company's gross margin is: A. $1,800,000. B. $1,500,000. C. $1,300,000. D. $1,700,000.arrow_forward
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