If the variable cost per unit increases while the selling price per unit and the fixed costs remain the same, how would you expect the change in variable costs to affect (i) profit (assuming sales volume unchanged) and (ii) the break-even point? Select one: O a. Decrease in profit and higher point to break even O b. Increase in profit and higher point to break even O c. Decrease in profit and lower point to break even O d. No effect on profit and breakeven point If the sales output of a firm increases, the break-even point will also increase. Select one: O True O False Which of the followings are benefits of preparing a monthly cash budget: i. Able to project the balance of cash available at the end of the month ii. Able to make an early detection for a need to obtain additional financing iii. Able to identify the opportunity to use the extra cash that would be available at the end of the month iv. The budget can be used for managing cash O a. ii, iii and iv O b. i, ii, iii and iv O c. i, ii and iv O d. i, ii and iii One of the purposes of budgeting is to promote forward thinking and identification of short-term problems. Which of the following statements is consistent with this purpose? Select one: O a. management is incapable to predict future promotion opportunities O b. management can react to problem areas as they occur. O c. management would be able to explore ways of overcoming potential problem areas O d. management can take actions when the actual results deviate from the targets To receive $1000 now is always preferred rather than $1000 in one year. Which of the following factors is not a reason for this preference? Select one: O a. Opportunity to earn some return on the amount of money O b. The increase in price level in the future O c. Risk of not receiving the amount of money as promised O d. One year is a long period to wait A $150,000, 5-year project will generate $40,000 and $60,000 profit in year 1 and year 2, respectively. The project has annual depreciation of $30,000 calculated using the straight-line method. What is the amount of cash flows generated in year 1 and 2? Select one: O a. $70,000 and $90,000 respectively O b. $70,000 and $30,000 respectively O c. $40,000 and $60,000, respectively O d. $10,000 and $30,000 respectively A firm had credit sales of $1,750,000 for February and $1,250,000 for March. It collected its sales 30% in the month of sale and 70% in the month following the sale. How much cash from sales would be collected in March? Select one: O a. $1,875,000 O b. $1,600,000 0 . $1,250,000 O d. $1,400,000 Your company is considering a project to build a bridge from Tioman Island to Mersing and your team is tasked to undertake the net present value analysis for this project. The analysis showed that the net present value was RM3.5 million. Which of the following statements are consistent with the positive NPV indicated by the analysis? i. Your company has adequate resources to undertake the project. ii. Shareholders of your company would be better off if the project is implemented iii. The project may cause significant marine pollution and damage the marine life around the island iv. The project will generate a greater return than the discount rate used in analysis Select one: O a. i, ii and iv O b. 0 . O d. i, ii, iii and iv i and iv ii and iv