Question

buy the Bond will have made a wise choice because discounted cash flow method, the unted cash flows would be greater than the face value of the bond of $50.000.000 counted cash flows will be equal to the face value of the Bond of 550.000.000, h ly ensuring no loss discounted cash flows will be below the face value of the investment making it a bargain purchase None of the above. Most traded Bonds are sold in multiples of $1000 units. T Bonds can be converted into cash through the banking system TF Balanced Score Card is an approach in segment performance evaluation that incorporate cal and nonfinancial performance measures in four major strategic areas: financial, customer internal business process, and learning and company growth 20 TF. Four categories of cost of quality include prevention, appraisal, failure, except rework costs of scrap and defective materials. 10. T.F. Break-even point analysis helps managers to identify clearly the loss or profit region when the use the Break-even Chart. 41. F. It is easy to observe the loss region of a break-even chart because in that region, the revenue ne is above the cost line. 42. The margin of safety is usually calculated to the left of the break-even point because it enables you to escape the loss. Assume that XYZ Company has a product that sells for $100 a unit. The variable cost of the product is $30.00. The Fixed cost of the company is $70,000.00 43. Using the information in Question 42, answer the following: What is the contribution margin? a $30.00 b. $80.00 C. $70.00 d. None of the above. 44. Using the information in question 42, what is the contribution margin ratio? a. 20% b. 70% C. 30% d. None of the above

Answer 1

43. The Contribution margin = Selling Price - Variable Cost er unit

Given in the problem, Per Units ------- Selling Price = $100 and the Variable cost = $30

Hence, Contribution margin = $100 - $30 = $70

Thus, Option C is the correct answer, and other answers are wrong.

44. The Contribution Margin ratio = Contribution margin / Sales = $70/$100 = 70%

Thus, Option B is correct and others are wrong.