Multiple Choice
Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. On this information alone,should Micro accept the offer?
A) No,because it will lose $1 per unit
B) No,because it will lose $2 per unit
C) No,because it will exceed capacity
D) Yes,because it makes $1 per unit in the short run
E) Unable to determine
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Internal control systems:<br>A)are the responsibility of the
Q3: An internal accounting system should:<br>A)provide information to
Q4: Economic Darwinism:<br>A)explains why firms persist in inefficient
Q5: Management accountants mainly are:<br>A)Internal consultants<br>B)Scorekeepers<br>C)Focused on calculating
Q6: Identify all the correct statements:<br>A)Managers naturally seek
Q7: <sub> </sub>Micro Enterprises has the capacity to
Q8: The firm's information system:<br>A)is always a single
Q9: <sub></sub>11.<sub> </sub>Micro Enterprises has the capacity to
Q11: <sub> </sub>Micro Enterprises has the capacity to
Q12: Performance measures:<br>A)are critical in designing a reward