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ACC - You invested $5,000 in the Cog corporation

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Question;You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in total assets. The Cog corporation had a net profit of $5 million and the Gear corporation had a net profit of $10 million. You read their annual reports and both companies had established a goal of having net profit equal to 10% of total assets. Which of the following statements is true regarding these 2 firms?;Cog is effective and more efficient than Gear.;Cog is effective but less efficient than Gear.;Gear is effective and more efficient then Cog.;Gear is effective but less efficient than Cog.;Cannot tell without more information.2 points Question 3;Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $190,000 and total expenses of $110,000. Sam earned an;accounting profit of $40,000.;accounting profit of $80,000 and an entrepreneurial profit of $40,000.;entrepreneurial profit of $80,000, but an accounting of $40,000.;entrepreneurial profit of $80,000.;Cannot tell from the information provided.2 points Question 4;Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,000. For Sam the opportunity cost of going into business was;$40,000.;$110,000.;$150,000.;zero because he has a profitable business. 2 points Question 5;All of the costs that a firm must pay, even if there are no sales, are;contribution costs.;fixed costs.;variable costs.;sales cost.2 points Question 6;Table 5-1. Steel Shelf Company;Category Cost Payment Period Cost;Rent Monthly $ 3,000;Utilities Monthly 1,100;Insurance Quarterly 1,200;Property Taxes Annually 6,000;Steel Per Shelf 9.00;Forming Per Shelf 0.25;Labor Per Shelf 0.75;Price Per Shelf 20.00;Refer to Table 5-1. The Steel Shelf company has variable costs per unit of ________.;$10.00;$18.33;$20.00;$25.00;$30,002 points Question 7;Table 5-1. Steel Shelf Company;Category Cost Payment Period Cost;Rent Monthly $ 3,000;Utilities Monthly 1,100;Insurance Quarterly 1,200;Property Taxes Annually 6,000;Steel Per Shelf 9.00;Forming Per Shelf 0.25;Labor Per Shelf 0.75;Price Per Shelf 20.00;Refer to Table 5-1. The Steel Shelf company has monthly fixed costs of _____ and a contribution margin of _____.;$5,000, $10;$5,000, $20;$5,800, $10;$11,300, $10;$11,300, $202 points Question 8;Refer to Table 5-1. The Steel Shelf company has a monthly break-even quantity of _____ shelves.;250;500;580;1,130;Cannot calculate with information provided.2 points Question 9;Refer to Table 5-1. If the Steel Shelf Company wants to earn a profit of $3,000 per month they will have to produce _____ shelves.;500;800;1,000;1,5002 points Question 10;Refer to Table 5-1. The Steel Shelf company has annual fixed costs of ________.;$5,300;$56,400;$60,000;$69,600;$135,6002 points Question 11The Steel Shelf company has to have annual revenue of _____ in order to break even.;$10,000;$120,000;$69,600;$135,600;Cannot calculate with information provided.2 points Question 12;The earning power of a company can be defined as the product of 2 factors;fixed asset turnover and cash flow per share.;net profit margin and fixed asset turnover.;net profit margin and total asset turnover.;total asset turnover and earnings per share.

 

Paper#43309 | Written in 18-Jul-2015

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