Ampro-Mag Is a Small Company That Makes Materials for Safely

question 4

Multiple Choice

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $100 each.The costs of the materials that go into each kit are $25.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$300 for advertising in trade journals,and $3,000 for the monthly salary of its owner.Ampro-Mag's average revenue per unit is

• A)$30.
• B)$70.
• C)$100.
• D)$130.
• E)$4,500.

Determine the effect of financial decisions on company's equity, debt, and taxable income.

Understand the significance of operating income (EBIT) and net operating working capital.

Understand and calculate corporate tax liabilities and adjusted tax payments.

Analyze and compute total operating capital from balance sheets.

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Definitions:

Antagonistic

Characterized by opposition or hostility towards something or someone.

Inferiority Feelings

Emotions or sensations of being lesser or inadequate compared to others, which can impact self-esteem and motivate compensatory actions or overcompensations.

Genetically Determined

Something that is genetically determined is influenced or controlled by genes and inherited from one's parents.

Overbearing Parents

Parents who exert excessive control over their children's lives, often leading to a lack of independence and self-efficacy in the child.