Oradell Company sells its single product at a price of $60 per unit and incurs the following variable costs per unit of product: Direct material $16 Direct labor 12 Manufacturing overhead 7 Total variable manufacturing costs $35 Selling expenses 5 Total variable costs $40 Oradells annual fixed costs are $880,000, and Oradell is subject to a 30% income tax rate. The number of units of product that Oradell Company must sell annually to break even is A.44,000 units. B.30,800 units. C.22,000 units. D.35,200 units. Spotech Co.s budgeted sales and budgeted cost of sales for the coming year are $212,000,000 and $132,500,000, respectively. Short-term interest rates are expected to average 5%. If Spotech could increase inventory turnover from its current 8.0 times per year to 10.0 times per year, its expected cost savings in the current year would be A.$3,312,500 B.$0 C.$828,125 D.$165,625 . When compared with a debt-to-assets ratio, a debt-to-equity ratio is A.Unrelated to the debt-to-assets ratio. B.About the same as the debt-to-assets ratio. C.Lower than the debt-to-assets ratio. D.Higher than the debt-to-assets ratio. . The type of option that does not have the backing of stock is called a(n) A. Unsecured option. B. Naked option. C. Covered option. D. Put option. . Revel Company has average daily sales of $5,000, 90% of which are on credit. Receivables are collected 28 days after sales, on average. What is Revel's average accounts receivable balance? a. $ 4,500 b. $ 5,000 c. $126,000 d. $140,000 Why is equity capital generally more expensive than debt financing? a. Dividends fluctuate more than interest rates. b. Interest on bonds is a legal obligation. c. Investors expect to be paid more for exposure to higher risk. d. Investors have a greater demand for equity investments than for debt investments