Isondo's TV and Appliance Store Is a Small Company That

question 98

Multiple Choice

Isondo's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
$$\begin{array} { l r } \text { Sales (1,200 televisions) } & \$ 1,200,000 \\\text { Cost of goods sold } & 540,000 \\\text { Store manager's salary per year } & 108,000 \\\text { Operating costs per year } & 216,000 \\\text { Advertising and promotion per year } & 24,000 \\\text { Commissions ( } 3 \% \text { of sales) } & 36,000\end{array}$$
-What was the variable cost per unit sold for 2015?

• A) $30
• B) $480
• C) $770
• D) $450

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Definitions:

P/E Ratio

The price-to-earnings ratio is a valuation measure comparing the current share price of a company to its per-share earnings.

EPS

Earnings per share, a measure of a company's profit divided by the outstanding shares of its common stock.

Market Portfolio

An investment portfolio that ideally includes all available assets in the market, weighted by their market capitalization, aiming to mimic the market's overall returns.