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2 years ago

At the break-even point:

Business

1 answer:

OlgaM077 [116]2 years ago

5 0

Answer:

D. Contribution margin would be equal to total fixed costs

Explanation:

As we know that

break even point is the point at which the firm is earning no profit or no loss suffered

In equation, it is

Total cost = Total revenues

In addition,

The contribution margin = Sales - variable expenses

Therefore

The contribution margin = Fixed cost = break even point

If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point

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Many large, packaged goods marketers like Procter & Gamble, Kraft, and Pillsbury have used the product manager (or brand man

katrin2010 [14]

Answer:

C. Product managers have direct responsibility for research and development of new products

Explanation:

The position of Product manager is an <u>all-encompassing role</u>. He is tasked with the job of ensuring the members of the team are up and doing; he ensures each member of the team supplies considerable input to the end that the team effort can be evidently seen. The Product manager is also saddled with the responsibility of ensuring swift communication amidst all parties; he splits complex tasks into easily understandable processes. He sets the target and goal for each team member; he is the one who accesses and optimizes team members' performances.

Despite and inspite of these varying responsibilities, the biggest and most vital task of the Product manager is to research products, assess the market (customers), create services/products which are innovative and solve critical problems thereby, adding value to the customer base. The more information he has about the market and need of the customers, the better he is able to tailor the products and services rendered to address those needs. Overall, the Product manager due to his extensive involvement and oversight, he ensures that the chances of product failure is significantly reduced.

<u>In the light of the explanation above, Option C. (Product managers have direct responsibility for research and development of new products) is the correct answer</u>.

4 0

3 years ago

Volbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses =

PIT_PIT [208]

Answer:

A. $69,855

B. $19,600

C. $5,700

D. $28,000

Explanation:

A. Calculation for the operating cash flow

Using this formula

Operating cash flow = EBIT + Depreciation

First step is to find the EBIT using this formula

EBIT = Sales – Cost – Other expenses - Depreciation

Let plug in the formula

EBIT = 255,000 -156,000 – 7,900 -15,600

EBIT = 75,500

Now let calculate the Operating cash flow using this formula

Operating cash flow = EBIT + Depreciation

Let plug in the formula

Operating cash flow = 75,500 + 15,600 -21,245

Operating cash flow =$69,855

B. Calculation for the 2015 cash flow to creditors

Using this formula

Cash flow to creditor = Redeemed long term debt + Interest

Let plug in the formula

Cash flow to creditor= 4,800 + 14,800

Cash flow to creditor= $19,600

C. Calculation for 2015 cash flow to stockholders

Using this formula

Cash flow to stockholders = Dividends – Issued equity

Let plug in the formula

Cash flow to stockholders= 12,000 – 6,300

Cash flow to stockholders=$5,700

D.If net fixed assets increased by the amount of $28,000 the addition to Net Working Capital will be the same amount of $28,000 reason been NET WORKING Capital has the following :Current assets – Current liability + Fixed asset which are all part of current asset.

7 0

3 years ago

Juan transferred 100 percent of his stock in Rosa Company to Azul Corporation in a Type B stock-for-stock exchange. In exchange,

slega [8]

Answer:

b. No gain recognized and a basis in Azul stock of $400,000

Explanation:

Data provided in the question

Transferred percentage = 100%

The fair market value of the stock he received is $1,000,000

And, the tax basis in the Rosa stock is $400,000

So by considering the above information, the $0 gains is recognized and his basis should equal to the tax basis i.e in the rosa stock i.e $400,000

Plus if the stock is sold for $1,000,000 than there would be a gain of $600,000 but in this case there is zero gain recognized

Hence, the option b is correct

7 0

3 years ago

Which of the following best characterizes the circular flow of income?

aivan3 [116]

Answer:

2. Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.

Explanation:

The circular flow of income shows the flow of money and resocurces within an economy.

The household owns means of production and businesses buy them from households. Households earn income. The income earned is then used to purchase goods and services from the business.

I hope my answer helps you

3 0

2 years ago

Strickland Corporation has invested in debt securities. Strickland intends to actively buy and sell this investment for profit.

True [87]

The answer is trading security.

A corporation that trades securities buys them with the intention of making a quick profit.

Companies will only invest if they think there is a good chance they will be compensated for the risk they are taking because they do not intend to hold such securities for an extended period of time.

If a corporation finds an undervalued security and wishes to take advantage of the chance, it may decide to speculate on various debt or equity assets.

Debt securities and equity securities are both included in the category of securities known as trading securities.

Hence, in the given case where Strickland Corporation has invested in debt securities. Strickland intends to actively buy and sell this investment for profit. This investment is classified as trading security.

Learn more about investment:

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3 0

2 years ago