answer these questions
Using the data below to perform a vertical analysis, the % value assigned to gross prot (rounded to the nearest whole amount) 18: Operating expenses $51,000 Prot before tax $30,000 Prot after tax $27,000 Which of the following statements concerned with the ARR and payback period methods is correct? A 5" Both methods are quite easy for managers to understand A b' If two projects have the same ARR the one with the lowest payback period would be preferred A C' Both methods ignore the time value of money A d' Both methods are simplistic and may be useful for a quick analysis to sort out projects for further analysis A '3' All of these statements are correct Wang Bakery sells muffins. The average selling price for of a muffin is $5.40. Average variable cost per muffin is $2.60. The average fixed expenses per month is $2,492. The average number of muffins sold per month is 900. Assuming the variable cost per muffin decreased to $2.40, would you decrease the selling price to $5.00 if the number of muffins sold per month increase to 980? O a. Yes, because profit increases O b. No, because profit decreases O c. Yes, because Wang will sell more units O d. Not enough data to decide a decrease in the price to $5. O e. No, because contribution margin per unit decreasedTerak Ltd produces leather belts. The production capacity is 5,000 belts per month and it is currently selling 4,000 belts per month at $40 each. The variable costs to produce each belt is $25. A new customer offered to purchase an additional 1,000 belts at $30 each. What would be the incremental cost for Terak Ltd to sell 1,000 belts to the new customer? O a. $160,000 O b. $25,000 O c. $100,000 O d. $125,000 O e. $30,000Which of the following statements is NOT correct O a. All of the options are correct O b. Management should aim for the highest possible liquidity ratios O C. Low liquidity ratios are undesirable O d. A lower liquidity ratio generally means lower ability to pay current obligations Oe. The higher the liquidity ratios the lower the risk for both creditors and owners