Over the Past Two Months,Lisa Has Received Several Orders for Goat

question 52

Multiple Choice

Over the past two months,Lisa has received several orders for goat grazing services.The order date,promise date,and delivery dates are shown in the table below. $$\begin{array} { | c | c | c | } \hline \text { Order Date } & \text { Promise Date } & \text { Delivery Date } \\\hline \text { June 1 } & \text { June 2 } & \text { June 3 } \\\hline \text { June 1 } & \text { June 4 } & \text { June 4 } \\\hline \text { June 6 } & \text { June 7 } & \text { June 7 } \\\hline \text { June 13 } & \text { June 15 } & \text { June 15 } \\\hline \text { June 15 } & \text { June 16 } & \text { June 18 } \\\hline \text { June 15 } & \text { June 18 } & \text { June 20 } \\\hline \text { June 18 } & \text { June 22 } & \text { June 22 } \\\hline \text { June 19 } & \text { June 25 } & \text { June 25 } \\\hline \text { June 20 } & \text { June 27 } & \text { June 27 } \\\hline \text { June 22 } & \text { June 29 } & \text { June 29 } \\\hline \text { June 24 } & \text { June 28 } & \text { June 30 } \\\hline \text { June 26 } & \text { July 4 } & \text { July 4 } \\\hline \text { June 28 } & \text { July } 8 & \text { July 7 } \\\hline \text { June 30 } & \text { July } 8 & \text { July 9 } \\\hline\end{array}$$ What is Lisa's percentage of on-time deliveries?

• A)75%
• B)64%
• C)56%
• D)51%

Understand the relationship between selling price, variable cost, and contribution margin.

Calculate and interpret the required rate of return for a project.

Differentiate between accounting break-even and cash break-even analysis.

Evaluate the effect of changes in sales volume on operating cash flow using the degree of operating leverage.

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Definitions:

Goal Conflict

A situation where different parties have goals that are not aligned, leading to potential conflict or inefficiency.

Budgetary Slack

The intentional underestimation of revenues and/or overestimation of expenses in a budget to create the appearance of having less money available than might actually be available.

Padding

The practice of inflating estimates or financial figures to create a buffer for unexpected costs or to create the appearance of greater value.

Static Budget

A fixed budget that does not change or adjust to variations in business activity levels, often used for control purposes in stable environment operations.