12% per year 5 years $5,000 MARR Useful life Initial investment Receipts-Expenses (R – E) $1,500/year Graph for Problems 11-35 to 11-39 Initial (R – E) Useful Life Investment $3,000 $2,000 $1,000 - so 40% -30% -20% -10% 0% 10% 20% 30% 40% ($1,000) ($2,000) X-Axis (Percent Change in Parameter) Y-Axis, PW(12%)

Q: RUE OR FALSE Net income under GAAP highlights differences between variable and fixed costs.

A: Answer:   Net income under GAAP highlights differences between variable and fixed costs.   The…

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

Q: Which of the following is not a correct statement O a. Profit maximization is vague conceptually.…

A: The profit maximization concept explains that the company should undertake such actions, investments…

Q: The difference between contribution margin and income from operations is ________. a. net income b.…

A: The contribution margin is the excess revenue over the value of variable cost and the operating…

Q: In economic analysis we want to minimize the difference: (Benefits - Costs).

A: While conducting an economic analysis (cost-benefit analysis) the benefits must weigh greater than…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: what are the meaning of Revenue Enhancement and Cost Saving ? and I need examples for each.

A: Revenue enhancement is the enhancement or increase in the revenue, which also leads to an increase…

Q: ered productively inefficient?

A: A choice is said to be productively inefficient when it is possible to produce higher units of…

Q: A) Semi-variable or semi-fixed costs (Mixed costs). These costs include both a direct of indirect…

A: Managerial accounting is the accounting process followed by a business for their better management.…

Q: The formula for ROI is simply the gain from the project minus cost of the project divided by the…

A: Return on investment is the actual gain on the project represented as a percentage.

Q: Economic Profit?

A: Economic profit is different from the accounting profit earned, accounting profit is calculated at…

Q: when total contribution margin equals total fixed cost this indicates operating income true false

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

Q: The break-even point is where a.Revenues Costs. c.Revenues = Costs. d.Revenues = Fixed Costs.

A: Formula: Break even units = Fixed cost / Unit contribution margin.

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

Q: discuss the advantages and disadvantages of residual income

A: INTRODUCTION: The excess of net income over the required minimum return is known as residual income.…

Q: In your own words explain the meaning of: a. differential revenue, b. differential cost, and c.…

A: In accounting, Differential means the difference between the two alternatives or two output levels,…

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the…

A: Solution:- Cost-volume-profit graph is the graph which measures the loss, profit and break-even…

Q: If net present value for a project is negative, then____. a. IRR is equal to Cost of capital b. IRR…

A: Net present value is the difference between the present value of cashflows discounted at the cost of…

Q: relevant cost analysis is: A. variable costs are always relevant. B. fixed costs are always…

A: When doing cost analysis for the company productions ,company is going to invest a lot of money so…

Q: Assume benefit is unchanged, how to manipulate  the cost to have positive NPV (net present value)

A: Net Present Value is the difference between PV of all cash inflows (benefits) and PV of all cash…

Q: Which of the following items does break-even analysis attempt to determine?   The point at which…

A: Breakeven level is that sales level at which business is only recovering its total incurred costs.…

Q: 8. Which of the following is NOT a component of aggregate expenditure? a.Investment b.Consumption…

A: The objective of the question is to identify which among the given options is not a component of…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: Which of these statements is incorrect: A. Contango occurs when the Basis, Pf - Ps is positive.…

A: Contango is a market condition where the futures price of a commodity is higher than the current…

Q: A cost that has previously been incurred and can not be recovered by choosing one alternative over…

A: Allocated cost: Expenses assigned to a particular department or project.Fixed cost: Expenses that…

Q: Why proponents of LIFO argue that it provides a better match of revenue and e expenses? In what…

A: Introduction:- FIFO and LIFO accounting are inventory management and financial accounting procedures…

Q: 1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one:

A: the correct option with adequate explanation are as follows

Q: How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual…

A: When a bond's coupon rate is calculated as a percentage of its face value, it indicates the annual…

Q: Consider the following statements: (1) Total costs will equal the sum of fixed and variable costs.…

A: (1) Total costs will equal the sum of fixed and variable costs. This statement is true because fixed…

Q: Joint cost CO

A: Joint cost is the cost of producing two or more products at same time.

Q: When the profitability index is equal to zero, the benefits equal the costs. True False

A: Profitability Index is defined as the ratio between the present value of cash inflow to the present…

Q: Label each of the following statements as either true (“T”) or false (“F”). A sunk cost will change…

A: Sunk cost: It can be defined as an expense that has already been paid for and cannot be recovered in…

Q: With example, explain the difference between induced and indirect economic impact.

A: Answer:- Economic impact definition:- An economic impact study investigates the effects of a certain…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues…

A: Relevant / Irrelevant / Differential Costs: Relevant Costs are the cost which are relevant in…