Finance Questions
Explore questions in the Finance category that you can ask Spark.E!
If you only pay the minimum monthly payments, would this be considered overusing your credit? T or F
If the maximum loan-to-value ratio that a lender will accept on a $200,000 loan is 90%, then the borrower must make a minimum down payment of _____
______ is a consumable item and is not a good idea to use credit to purchase
Something pledged as security for repayment of a loan, for example a car, is called _____
The most common item that people get a consumer loan for is ____
Becky's monthly take-home pay is $4,400 and her total monthly payments are $1,100. What is Becky's debt safety ratio?
You can borrow as much as you want with a student loan? T or F
MEM manufactures two products. Product X has a contribution margin of $26 and requires 4 hours of machine time. Product Y has a contribution margin of $14 and requires 2 hours of machine time. Assuming that machine time is limited to 3,000 hours, how should it allocate the machine time to maximize its income?(a)Use 1,500 hours to produce X and 1,500 hours to produce Y.(b)Use 2,250 hours to produce X and 750 hours to produce Y.(c)Use 3,000 hours to produce only X.(d)Use 3,000 hours to produce only Y.
A high degree of operating leverage:(a)indicates that a company has a larger percentage of variable costs relative to its fixed costs.(b)is computed by dividing fixed costs by contribution margin.(c)exposes a company to greater earnings volatility risk.(d)exposes a company to less earnings volatility risk.
The degree of operating leverage:(a)can be computed by dividing total contribution margin by net income.(b)provides a measure of the company's earnings volatility.(c)affects a company's break-even point.(d)All of the answer choices are correct.
Net income will be:(a)greater if more higher-contribution margin units are sold than lower-contribution margin units.(b)greater if more lower-contribution margin units are sold than higher-contribution margin units.(c)equal as long as total sales remain equal, regardless of which products are sold.(d)unaffected by changes in the mix of products sold.
Mackey Corporation has fixed costs of $150,000 and variable costs of $9 per unit. If sales price per unit is $12, what is break-even sales in dollars?(a)$200,000.(b)$450,000.(c)$480,000.(d)$600,000.
Gabriel Corporation has fixed costs of $180,000 and variable costs of $8.50 per unit. It has a target income of $268,000. How many units must it sell at $12 per unit to achieve its target net income?(a)51,429 units.(b)128,000 units.(c)76,571 units.(d)21,176 units.
Croc Catchers calculates its contribution margin to be less than zero. Which statement is true?(a)Its fixed costs are less than the variable costs per unit.(b)Its profits are greater than its total costs.(c)The company should sell more units.(d)Its selling price is less than its variable costs.
Which one of the following describes the break-even point?(a)It is the point where total sales equal total variable plus total fixed costs.(b)It is the point where the contribution margin equals zero.(c)It is the point where total variable costs equal total fixed costs.(d)It is the point where total sales equal total fixed costs.
In a decision to retain or replace equipment, the book value of the old equipment is a (an):(a)opportunity cost.(b)sunk cost.(c)incremental cost.(d)marginal cost.
If the unit contribution margin is $15 and it takes 3.0 machine hours to produce the unit, the contribution margin per unit of limited resource is:(a)$25.(b)$5.(c)$4.(d)None of the above are correct.
Sales mix is:(a)important to sales managers but not to accountants.(b)easier to analyze on absorption costing income statements.(c)a measure of the relative percentage of a company's variable costs to its fixed costs.(d)a measure of the relative percentage in which a company's products are sold.
Walton, Inc. makes an unassembled product that it currently sells for $55. Production costs are $20. Walton is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Walton make?(a)Sell before assembly; net income per unit will be $12 greater.(b)Sell before assembly; net income per unit will be $1 greater.(c)Process further; net income per unit will be $13 greater.(d)Process further; net income per unit will be $1 greater.
The _______________________ shows the number of units of a product to produce to meet anticipated sales demand