Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a new
range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers is estimated at $500,000.
The costs producing a single unit is $250.
The company prices these speakers at $400. The sales forecast projects that 2,000 units will be
sold by the end of the first year, 4,500 more in the second year, and 2,500 during the third year
after launch. What is the gross profit margin percentage for the first year?
A) 50% B) 62.5% C) 25% D) 37.5%
D
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If you put $200 in a savings account at the beginning of each year for 10 years and then allow the account to compound for an additional 10 years, how much will be in the account at the end of the 20th year?
Assume that the account earns 10%, and round to the nearest $10. A) $8,300 B) $9,100 C) $8,900 D) $9,700
Which of the following below is not a characteristic of a Limited Liability Company?
A) limited life B) limited liability C) file articles of organization with the state government D) avoids mutual agency