Sarratt Corporation's contribution margin ratio is 73% and its fixed monthly expenses are $35,000. Assume that the company's sales for May are expected to be $94,000.Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

If a manufacturer ships merchandise to a retailer on consignment, the unsold merchandise should be included in the inventory of the

A) consignee
B) retailer
C) manufacturer
D) shipper

Furniture World is required by law to collect and remit sales taxes to the state.If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax,what is the journal entry to record the cash sales?

A) Debit Cash $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680.
B) Debit Sales Taxes Payable $4,680; debit Cash $73,220; credit Sales $78,000.
C) Debit Cash $78,000; credit Sales $78,000; and record the taxes when paid.
D) Debit Cash $78,000; credit Sales $73,320; credit Sales Taxes Payable $4,680.
E) Debit Accounts Receivable $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680.

The nondiscriminating pure monopolist's demand curve:

A) is the industry demand curve.
B) shows a direct or positive relationship between price and quantity demanded.
C) tends to be inelastic at high prices and elastic at low prices.
D) is identical to its marginal revenue curve.

A bond that can be retired prior to maturity by the issuer is a(n) ____________ bond.

A) convertible
B) secured
C) unsecured
D) callable
E) Yankee

If the elasticity of demand for labor in the United States is unitary, immigration into the United States can be expected to

A) increase the average U.S. wage rate.
B) decrease the total amount of wage earnings that U.S. workers receive.
C) increase the total amount of wage earnings that U.S. workers receive.
D) leave the total amount of wage earnings that U.S. workers receive unchanged.