Question
1.) Which one of these is most associated with an IRR of -100 percent? a) Degree of operating leverage. b) Accounting break-even point. c) Contribution
1.) Which one of these is most associated with an IRR of -100 percent? a) Degree of operating leverage. b) Accounting break-even point. c) Contribution margin. d) Simulation analysis. e) Cash break-even point
2. A decrease in which one of the following will increase the accounting break-even quantity? Assume straight-line depreciation is used and ignore taxes. a) Sales price per unit. b) Management salaries. c) Variable labor costs per unit. d) Initial fixed asset purchases. e)
3) Which one of the following statements concerning scenario analysis is correct? a) The pessimistic case scenario determines the maximum loss, in current dollars, that a firm could possibly incur from a given project. b) Scenario analysis defines the entire range of results that could be realized from a proposed investment project. c) Scenario analysis determines which variable has the greatest impact on a project's final outcome. d) Scenario analysis helps managers analyze various outcomes that are possible given reasonable ranges for each of the assumptions.
4) Jill's Jello produces 190,000 units and sells those units for $22 each. The company spends $200,000 on rent and machinery, and $15 per unit in materials and labor. 4a). The marginal revenue for the firm is: $ 4b). The marginal cost for the firm is: $ 4c). The average cost for the firm is: $ (round answer to nearest cent) 4d). The marginal profit for the firm is: $ 4e). The total profit for the firm is $ (don't include any commas) 4f). The rule for profit maximization is that as long as (select: total cost, total profit, marginal profit, total revenue, marginal cost, marginal revenue) is greater than (select: total cost, price, total revenue, average cost, marginal cost) a firm should continue production.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started