35. The incremental profit generated by the sale of one additional unit is equal

Question

35.       The incremental profit generated by the sale of one additional unit is equal to the

A.        contribution margin per unit.

B.        selling price.

C.        margin of safety.

D.        incremental cost.

36.       If the cash inflows during a project’s life are an annuity, the present value factor used to find the internal rate of return is calculated by

A.        dividing the initial outlay by the annuity amount.

B.        multiplying the annuity amount by the number of years it occurs.

C.        discounting the cash flows.

D.        dividing the present value of the annuity by the initial outlay.

Explanation / Answer

35.A.        contribution margin per unit.

36.B.        multiplying the annuity amount by the number of years it occurs.

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