Dimon Products' Sales Are Expected to Be $5 Million This

question 42

True/False

Dimon Products' sales are expected to be $5 million this year, with 90% on credit and 10% for cash.Sales are expected to grow at a stable, steady rate of 10% annually in the future.Dimon's accounts receivable balance will remain constant at the current level, because the 10% cash sales can be used to support the 10% growth rate, other things held constant.

Recognize the characteristics and creation of goodwill messages.

Understand the proper structure and sequence for indirect strategy in bad-news messages.

Learn appropriate practices for workplace messaging and social media use.

Grasp the importance and methods of rational and emotional appeals in persuasion.

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Definitions:

Variable Cost

A cost that varies directly with the level of production or sales volume.

High-low Method

A method applied in cost accounting that calculates fixed and variable expenses by analyzing the maximum and minimum activity levels.

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.

Pre-tax Income

Pre-tax Income is the amount of income earned by a business before any taxes have been deducted.