For an organization with annual sales of $500 million, purchases of $300 million and profit of $75 million, a 15 percent reduction in the cost of purchases would result in a profit-leverage effect of:. a. 10 percent (sales increase of 10 percent would be required to achieve the same percentage increase in profit).
b. 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).
c. 10 percent (sales increase of 50 percent would be required to achieve the same percentage increase in profit).
d. 15 percent (sales increase of 15 percent would be required to achieve the same percentage increase in profit).

On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.

Which of the following is not an example of one of the four mail advantages of prices on a free market economy