Question
1. Examining how sales volume and accounting profitability are related is called: 2. In a decision tree analysis earlier stage decision are more important than
1. Examining how sales volume and accounting profitability are related is called:
2. In a decision tree analysis earlier stage decision are more important than later stage decisions. True or False.
3. Sensitivity analysis is useful for targeting:
4. A company is analyzing a proposed project. The company expects to sell 3,299 units plus or minus 4.00%. The expected VC per unit is $11 and the expected FC are $12,500. Cost estimates are considered accurate within plus or minus 2%. The depreciation expense is $2,000. The sale price is estimated at $19 a unit plus or minus. What is the contribution margin under the expected case scenario?
5. A bond selling at a premium, how will the YTM be valued relative to the coupon rate?
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