question 114
Multiple Choice
The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment Total Assets Liabilities and Stockholders’ Equity Current liabilities Long-term liabilities Stockholders’ equity-common Total Liabilities and Stockholders’ Equity Income Statement Sales Cost of goods sold Gross profit Operating expenses Net income Number of shares of common stock Market price of common stock Dividends per share $45,00030,00040,000310,000$425,000$55,000110,000260,000$425,000$120,00065,000$55,00030,000$29,5006,000$20.50 What is the return on assets for Ortiz?
Apply the break-even analysis to different sales mixes and product scenarios.
Calculate the effect of changes in fixed and variable costs on the break-even point.
Interpret cost-volume-profit (CVP) charts and understand their significance.
Identify the components and calculation of the contribution margin and contribution margin ratio.
Definitions:
Interactive Leadership
A leadership style characterized by open communication and active engagement with team members to inspire and motivate.
Transactional Approach
A leadership model focusing on the exchanges or transactions between leaders and followers, often involving rewards for performance.
Democratic
A leadership or government style characterized by the principle of making decisions by majority vote, often emphasizing equality and participation.
Participative
A management approach that involves employees in decision making processes, aiming to increase engagement, commitment, and collaboration.