Question

Question 12 Qualitative information that a manager might evaluate in making a decision would include all of the following except Not yet answered Marked out of 2.00 Flag question Select one: O A. upsetting regular customers by offering discounts to selected customers OB. the effect of layoffs on employee morale C. calculating the breakeven point under two different alternatives OD. the reduction in control over delivery time due to subcontracting Question 13 Which of the following is a capital budgeting method? Not yet answered Marked out of 2.00 Select one: O A. net present value O B. inventory turnover O C. return on equity Flag question O D. return on assets

Answer 1

Question 12. Qualitative information that a manager evaluates in making their decisions would include all of the following except Option C.; calculating the breakeven point under two different alternatives.

Question 13. Option A.; Net Present Value among the options is a capital budgeting method. Net present value computes the present value of future earnings of an investment compared to the initial amount invested.

Question 14. Option C.; decrease by $6 per unit.

The computation will be as follows;

Sales price	$270	$290
- Variable cost	$80	$80
- Additional Variable cost		$26
Contribution Margin	$190	$184
The decline in operating income		$6

Question 15. Capital budgeting involves Option D.; evaluating various long- term investments. Capital budgeting plays a critical role in investment decisions by providing various methods for evaluating various mutually exclusive events as well as independent investment proposals.