Q1:
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cake. Labor costs will go from $1.78 to $2.38 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Cake would need to be sold next round to break even on the product?
Select: 1
852
918
884
888
Q2:
Of Digby Corporation’s products, which earned the lowest Net Margin as a percentage of its sales?
Select: 1
Dot
Dixie
Dell
Daze
Q3:
Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin’s 12.5S2021 bond early.
Select: 1
$15,841,880
$14,008,592
$14,665,611
Q4:
What would Chester Corporation’s market capitalization be if the current stock price fell 10%?
Select: 1
$79.3 million
$77.8 million
$88.1 million
$70.0 million
Q5:
The Baldwin company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs have increased to $30 per hour. How much would their training costs per employee be to the nearest dollar?
Select: 1
$1,200
$400
$2,382
$1,182
Q6:
Which description best fits Digby in your industry? For clarity:
– A differentiator competes through good designs, high awareness, and easy accessibility.
– A cost leader competes on price by reducing costs and passing the savings to customers.
– A broad player competes in all parts of the market.
– A niche player competes in selected parts of the market.
Which of these four statements best describes this competitor?
Select: 1
Digby is a broad cost leader
Digby is a broad differentiator
Digby is a niche differentiator
Digby is a niche cost leader
Q7:
The Andrews company currently has the following balances in their equity accounts:
Common Stock $18,335
Retained earnings $89,086
Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year?
Select: 1
$119,386
$123,421
$107,421
$64,635
Q8:
The Digby company will sell 100 units (x1000) of capacity from their Dixie product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Digby company will sell the capacity for 35% off. How much do they receive when the capacity is sold?
Select: 1
$1,190,000
$3,400,000
$2,210,000
$1,870,000
