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What percentage of the contribution margin is profit on units sold

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11. What percentage of the contribution margin is profit on units sold in excess of the breakeven point?;A) It's 50% to the contribution margin ratio.;B) It's equal to the variable cost ratio.;C) It's equal of the gross profit ratio.;D) It's 100%.;12. An example of a cost that is likely to have a variable behavior pattern is;A) sales force salaries.;B) depreciation of production equipment.;C) salaries of production supervisors.;D) direct labor costs.;13. What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?;A) 14.59 days;B) 46.25 days;C) 70.41 days;D) 136.25 days;14. Assume the total expense for your current year in college equals $20,000. Approximately how much would your parents have needed to invest 21 years ago in an account paying 8% compounded annually to cover this amount?;A) $ 952;B) $1,600;C) $1,728;D) $3,973;15. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?;A) 5.00%;B) 5.33%;C) 6.46%;D) 7.00%;16. What is the required return for a stock that has a 5% constant growth rate, a price of $25, an expected dividend of $2, and a P/E ratio of 10?;A) 5%;B) 10%;C) 13%;D) 22%;17. An increase in a firm's financial leverage will;A) increase the variability in earnings per share.;B) reduce the operating risk of the firm.;C) increase the value of the firm in a non-MM world.;D) increase the WACC.;18. A firm has an expected return on equity of 16% and an after-tax cost of debt of 8%. What debt-equity ratio should be used in order to keep the WACC at 12%?;A).50;B).75;C) 1.00;D) 1.50;19. What is the most likely prediction after a firm reduces its regular dividend payment?;A) Earnings are expected to decline.;B) Investment is expected to increase.;C) Retained earnings are expected to decrease.;D) Share price is expected to increase.;20. Which of the following would not be included among the costs of carrying inventory?;A) Obsolescence;B) Opportunity cost of capital;C) Raw material cost;D) Risk of pilferage

 

Paper#26444 | Written in 18-Jul-2015

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