24. During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500.

Question

24.

During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500. Fixed costs were $456,250 and 37,016 units were sold. If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the company’s budgeted profit?

A)

$95,457

B)

$132,414

C)

$525,000

D)

$667,957

25.

Visit finance.yahoo.com and determine which of the following statements is incorrect:

A)

The current market cap of Google is greater than the market cap of Microsoft.

B)

The current ratio for the most recent quarter for Microsoft is greater than the current ratio for Google.

C)

The current price per share of Google is more than ten times that of Microsoft.

D)

Return on equity for the most recent quarter for Microsoft is higher than return on equity for Google.

24.

During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500. Fixed costs were $456,250 and 37,016 units were sold. If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the company’s budgeted profit?

A)

$95,457

B)

$132,414

C)

$525,000

D)

$667,957

Explanation / Answer

24) 37016 unit sold

revenue = 925400

hence per unit price = $25

and estimating to 40000 unit

which means = 40000*25 = 1000000

profit was 88500 / 925400 = 9.56%

so accordingly the profit percentage th profit will be $95,457

hence option A

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