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Consolidated Corporation had the following information: ​ Revenues   $250,000 Cost of goods sold:     Direct materials $50,000   Direct labor 37,500   Overhead   62,500   150,000 Gross profit   $100,000 Selling and administrative expenses     37,500 Operating income   $  62,500 ​ What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

Which of the following methods uses income instead of cash flows?

Burlywood Company has two divisions with the following segment margins for the current year: Rosewood, $170,000; Sandalwood, $230,000. Common expenses of the company are $36,000. Calculate Burlywood Company’s net income.

Ursula Company is considering the purchase of a new machine for $160,000. The machine would generate an annual cash flow before depreciation and taxes of $62,588 for four years. At the end of four years, the machine would have no salvage value. The company’s cost of capital is 12%. The company uses straight-line depreciation with no mid-year convention and has a 40% tax rate. What is the internal rate of return (rounded to the nearest percent) for the machine?

Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board game. The game sold only 10,000 units in the current year when 30,000 were projected. Sales for next year look no better. At $100 per game, it is not a hot seller. Direct costs of the board game are $56 variable cost and $100,000 fixed. John is considering several options. Option 1: Cut the price to $70 and perhaps sell 15,000 units. Option 2: Cut the price to $60, reduce material costs by $10, and cut advertising by $60,000. Anticipated volume for this option is 10,000 units. Option 3: Cut the price to $80 and include a $10 mail-in rebate offer. It is anticipated that 15,000 units could be sold and only 30% of the rebate coupons would be redeemed. ​ What is the profit (loss) from Option 3?

When firms with market power price products “too high”, they are

The contribution margin variance is the difference between the actual contribution margin and the

The process of making capital investment decisions is often referred to as

According to the text discussion, which of the following product life-cycle stages comes first?

How many states allow school administrators to apply corporal punishment?