On an Average Day,Goose Down Feathers Receives $2,400 in Checks

question 27

Multiple Choice

On an average day,Goose Down Feathers receives $2,400 in checks from customers.These checks clear the bank in an average of 2.2 days.The applicable daily interest rate is 0.04 percent.What is the present value of the float? Assume each month has 30 days.

• A)$115.20
• B)$618.40
• C)$4,080.00
• D)$5,280.00
• E)$6,256.50

Understand the effect of changes in inventory levels on net operating income under absorption and variable costing.

Identify and calculate contribution margins and gross margins.

Understand and calculate the effects of fixed manufacturing overhead costs on net operating income.

Analyze the impact of selling price, variable cost, and fixed costs on net operating income.

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Definitions:

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of modern-day New York, New Jersey, Pennsylvania, Maryland, Connecticut, and Delaware.

Wampum

Traditional shell beads of the Eastern Woodlands tribes of Native Americans, used for trading, storytelling, and ceremonial purposes.

Pilgrims

Early settlers of the Plymouth Colony in present-day Massachusetts who arrived on the Mayflower in 1620, seeking religious freedom.

Puritans

A religious reform movement in the late 16th and 17th centuries, seeking to "purify" the Church of England of Roman Catholic practices, many of whose adherents later settled in North America.