题目内容

Which TWO of the following are advantages of using the Internal Rate of Return (IRR) to appraise capital investment projects?

A. IRR considers the time value of money
B. IRR uses profits rather than cashflows
C. IRR is easy for non-financial managers to compare against target percentages
D. IRR considers the relative sizes of projects

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An organisation expects to sell 50,000 units of Product X in a month. The fixed costs are $100,000 and the variable costs are $3 per unit. If the selling price is $7.50, what is the margin of safety?

A. 55.6%
B. 44.4%
C. 73.3%
D. 33.3%

ABC Co has a product with fixed costs of $100,000 and required profit of $75,000. Variable costs for the product are $12 per unit. If demand is for 20,000 units what is the selling price?

A. $8.75
B. $17.00
C. $20.75
D. $15.75

A company has sales that are constant throughout the year. Production levels are maintained at the same volume as sales each month, so inventory holdings are close to nil. The company has identified that labour will be a limiting factor over the next two months due to summer holidays. How will this affect sales?

A. Sales will fall
B. Sales will increase
C. Sales will be unaffected
D. Sales may vary

During the year XYZ Co can sell 100,000 units of product Z. Each unit requires 0.75kg of raw materials of which 97,000kg are available. Each unit also requires 0.5 labour hours of which 30,000 are available.What is the limiting factor?

A. Sales
B. Raw materials
C. Labour
D. No limiting factor

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