If a product has a contribution margin of 40% and has a price of $5.00 per unit, how many units must be sold to breakeven assuming a fixed cost of $800,000.00?

Select one:

a. 0.4 million

b. 0.9 million

c. 1.6 million

d. 0.6 million

Master Company has 3 million shares of common stock trading at $50 dollars per share on which investors expect a return of 16%. The company also has debt with a market value of $70 million with a pretax cost of 7%. What is the weighted average cost of capital if the tax rate is 40%? Master has no preferred stock outstanding.

Select one:

a. 13.2%

b. 11.8%

c. 7.87%

d. 8.77%

The direct and indirect quotes on the Swiss franc are 0.75 and 1.33, respectively. The direct and indirect quotes on Polands zloty are 0.25 and 3.94, respectively. How many zloty will it cost a Polish merchant to purchase a watch priced at 270 Swiss francs.

Select one:

a. 810 zloty

b. 90 zloty

c. 2400 zloty

d. 154 zloty

Mattingly, Inc. uses 40,000 weberwalls per year. On average, weberwalls cost $12, and the annual cost of carrying one in inventory is $1.50. The cost to place an order is $50. Based on this information, what is Mattingly's annual ordering cost for purchasing weberwalls if they observe the EOQ model?

Select one:

a. $2,450

b. $1,225

c. $1,731

d. $1,633

e. $1,155