Oriental Company has gathered the following data on a proposed investment project: Investment in depreciable equipment $200,000 Annual net cash flows $50,000 Life of the equipment 10 years Salvage value $0 Discount rate 10% The company uses straight-line depreciation on all equipment. The payback period for the investment would be: 0.25 years. B 4 years. 10 years. D 2.41 years. Last year, Black Company reported sales of $640,000, a contribution margin of $160,000, and a net loss of $40,000. Based on this information, the break-even point in total sales dollars was: $480,000. B $800,000 $960,000. D $640,000. The following data pertain to activity and costs for two recent months: October November Activity level in units 5,000 10,000 Variable costs $10,000 $20,000 Fixed costs $30,000 ? Mixed costs $20,000 ? Total costs $60,000 $75,000 Assuming that these activity levels are within the relevant range, the mixed costs for November were? A $20,000. B $30,000 $25,000 D $40,000. The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Month Sales April $100,000 May $120,000 June $110,000 The budget for cash collections in June will be: A $111,000 B $110,000 $113,400. D $115,500. Ostler Company's net income last year was $10,000 and its contribution margin was $50,000. Using the operating leverage concept, if the company's sales increase next year by 8%, net income can be expected to increase by: B 160% 16% 40% D 20% 17 of 60 13 15 14 16 K >