Answer the Following Questions Using the Information Below

question 192

Multiple Choice

Answer the following questions using the information below:

Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.


-Option one: Fixed costs of $10,000 and a breakeven point of 500 units. Option two: Fixed costs of $20,000 and a breakeven point of 700 units.
Which option should you choose if you are expecting to produce 600 units?

• A) Option one as sales is higher than breakeven
• B) Option two as sales is lower than breakeven
• C) Option two as it would lead to a higher operating income
• D) Option one as fixed costs is more

Recognize the significance of changes in financial ratios over time and their impact on company valuation.

Distinguish between sources and uses of cash and their reflection in a firm's financial health.

Understand the relationship between asset, liability, and equity accounts and their impact on fund sourcing and use.

Analyze the components and implications of various financial ratios, including profitability, liquidity, and solvency ratios.

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Definitions:

Conflict Situations

Refers to scenarios where there are disagreements or clashes between individuals or groups, often leading to tension and disputes.

Cooperation

The act of working or acting together for a common purpose or benefit, often involving mutual assistance or teamwork.

Assertiveness

The quality of being self-assured and confident without being aggressive.

Five-step Resolution

A systematic process or strategy designed to resolve conflicts or problems through five distinct stages or steps.