Question 25 Which of the following is the correct formula for the profit margin ratio? Not yet answered Marked out of 2.00 Select one: O A. Net profit * Capital invested O B. Net profit/ Sales P Flag question C. Net sales / Average total assets OD. Operating income / Net sales Question 26 Costs that do not differ between alternatives are Not yet answered Marked out of 2.00 P Flag question Select one: O A. important only if they represent a material dollar amount O B. considered opportunity costs O C. considered irrelevant to the decision O D. relevant to the decision Question 27 Which of the following best describes the term "capital rationing"? Not yet answered Marked out of 2.00 Flag question Select one: O A. a method of determining the period within which the cash invested is recouped OB. a method which shows the effect of an investment on a company's accrual-based income O C. a process of controlling operating costs when adequate funds are not available O D. a process of ranking and choosing among alternative capital investments based on the availability of funds Question 28 Deng Corporation manufactures two styles of lamps - Bedford Lamp and Lowell Lamp. The following per unit data are available: Not yet answered Marked out of 200 P Flag question $17 Bedford Lamp Lowell Lamp Sales price $25 $35 Variable costs $23 Machine hours required for one lamp 2 Total fixed costs are $40,000. Machine hour capacity is 20,000 hours per year. Assuming that the company can sellas many products as it can make, which product mix would deliver the highest operating income? Select one: O A. 10,000 Bedford Lamps and O Lowell Lamps O B. 5000 Bedford Lamps and 10,000 Lowell Lamps O C. 10,000 Bedford Lamps and 10,000 Lowell Lamps D. O Bedford Lamps and 5000 Lowell Lamps