1. Calculate the breakeven price from the following information. quantity of services = $3,000 fixed costs = $45,000 average cost per unit = $150.00 required profit = $30,000:
A) $175.00 B) $300.00 C) $160.00 D) $310.00
2. Which of the following best describes “days in accounts receivable?”
A) a profitability ratio that measures how quickly an organization generates revenue B) a liquidity ratio that estimates how quickly an organization converts receivables to cash C) a liquidity ratio that measures how long it takes an organization to pay its bills D) a profitability ratio that evaluates credit and collection policies.