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Which of the following will cause the EBIT Break-Even for sales to increase? (A) a decrease in the sales price (B) a decrease in depreciation
Which of the following will cause the EBIT Break-Even for sales to increase? (A) a decrease in the sales price (B) a decrease in depreciation expense (C) a decrease n operating expenses 8. (D) a decrease in the number of units sold 9. The man ufacturer of a brand of kitchen knives is investigating the likely effects that an increase in the st of the raw materials required to make these knives will have on the cost of manufacturing the knives, co selling price of the knives, the number of knives that will then be sold, and the project's net present the value (NPV). Which of the following best describes what type of analysis the manager is performing? (A) scenario analysis (B) internal rate of return (IRR) analysis (C) accounting break-even analysis (D) sensitivity analysis 10. Which of the following statements is FALSE? (A) We begin the capital budgeting process by determining the incremental earnings of a project. (B) The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income (C) Investments in plant, property, and equipment are directly listed as expense when calculating earnings. (D) The opportunity cost of using a resource is the value it could have provided in its best alternative use
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