The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as follows:
Sales (160,000) gallons $500,000
Variable costs 312,000
Contribution margin 188,000
Fixed costs 100,000
Net Income $ 88,000
Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is
a) $0.55 per gallon.
b) $1.95 per gallon.
c) $2.50 per gallon.
d) $1.18 per gallon.
Answer: b) $1.95 per gallon.
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The Porter-Lawler motivation theory emphasizes which of the following?
a. Intrinsic reward is the perceived value of a reward that comes from performing the task and resulting in satisfaction. b. Behaviors are functions of their consequences. c. A need is transformed into behavior directed at supporting, or allowing, the performance of goal behavior to reduce the felt need. d. Perceived inequities of an employment situation lead to changes in behavior.
What is Samuel's gross income for 2014?
Samuel Ahn recently graduated from college and started working in a promising career field. He has a little money invested in a stock that pays no dividends. He lives in an apartment, is single, and has no dependents. He has a $22,000 student loan balance and he paid $800 interest in 2014. He is considering going back to school part-time for some additional computer classes. He does not have a personal IRA, and he contributed 2 percent of his $39,500 salary to his employer's 401(k) plan in 2014. As he completes his tax return for 2014, use the information above and below to help him answer the following questions. Standard deduction for 2014: $6,200 Personal exemption for 2014: $3,950 Tax brackets for 2014: Taxable income range Tax rate Up to $9,075 10 percent More than $9,075 but under $36,900 15 percent More than $36,900 but under $89,350 25 percent A) $35,250 B) $22,500 C) $39,500 D) Not enough information to determine