Ross - Chapter 11 #100Type: Concepts101.Thomas Industrial Products is considering offering a special one-time deal to its best customers. The company expects this offering to increase its total sales from 1,400 units to 1,550 units. The variable cost per unit is $134.31. The total fixed cost is $125,000. If the company is willing to accept the lowest possible price without losing money, it should charge a price equal to: A. $134.31 + ($125,000/1,550).B. $134.31 + ($125,000/1,400).C. $125,000/1,400.D. $125,000/1,550.E.$134.31.Difficulty: IntermediateLearning Objective: 11-01 How to determine relevant cash flows for a proposed project.Ross - Chapter 11 #101Type: Concepts

102.The financial break-even identifies the minimum level of sales quantity required to: Difficulty: IntermediateLearning Objective: 11-03 How to calculate operating cash flow using alternative methods.Ross - Chapter 11 #102Type: Concepts103.Which of the following is (are) true concerning the accounting break-even point?I. The net income is zero.II. The net present value is zero.III. The operating cash flow is zero.IV. The internal rate of return is zero. Difficulty: IntermediateLearning Objective: 11-03 How to calculate operating cash flow using alternative methods.Ross - Chapter 11 #103Type: Concepts104.A project that has a payback period exactly equal to its life is a project that is operating at its: Difficulty: BasicLearning Objective: 11-03 How to calculate operating cash flow using alternative methods.Ross - Chapter 11 #104Type: Concepts

105.At the cash break-even point, a multi-year project has a net present value that is equal to: A. Fixed costs.B.The initial cash outlay.C. The annual depreciation expense.D. The contribution margin.E. Zero.Difficulty: BasicLearning Objective: 11-03 How to calculate operating cash flow using alternative methods.Ross - Chapter 11 #105Type: Concepts106.Which one of the following most likely represents the greatest forecasting risk? Difficulty: IntermediateLearning Objective: 11-04 How to calculate the present value of a tax shield on CCA.Ross - Chapter 11 #106Type: Concepts

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