Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements is not true about contribution? Select one: O a. Contribution margin is the contribution of the unit sale towards both
Which of the following statements is not true about contribution? Select one: O a. Contribution margin is the contribution of the unit sale towards both fixed costs and profit. O b. Contribution helps in evaluating different areas of the business to determine which service or product line to emphasize based on the highest margin O c. Total contribution is the different between revenue and cost of sales O d. Total contribution equals to fixed cost when a company is at its break-even point AmongUs Inc. is contemplating the purchase of a machine that will provide it with net cash flows of $100,000 per year for 3 years. Interest is 10%. Assume the net cash flows occur at the end of each year. What is the present value of the 3 years' net cash flows? Select one: O a. $150,000 O b. $248,600 O c. $272,700 O d. $300,000 Zoom Company is planning to purchase a machine at a cost of $200,000. The planned delivery date is 1st February 2021. A deposit of $10,000 is to be paid on 1st December 2020. What would be shown in the cash budget of December 2020, with regard to this planned transaction? Select one: O a. $200,000 cash payment O b. $10,000 cash payment 0 . $10,000 cash receipt O d. $200,000 cash receipt The following statements are correct with regards to capital investments, except. Select one: O a. Investment decisions are made easier as cash forecasts are always accurate. O b. It may be very difficult to quantify all factors that impact on an investment decision. O C. The results from using an investment appraisal method is only one input into the final decision. O d. The validity of assumptions made in relation to an investment proposal may influence the final decision
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started