The practice of using call centers, where employees receive calls from customers and provide service by taking orders and answer

This scenario exemplifies Agency conflict. It occurs when someone has the authority to make decisions on behalf of an entire organization. In this case, shareholders support an acquisition offer while the board of directors chooses to decline it.

Answer:

50%

Explanation:

To determine the margin on price, calculate the variance between the selling price and production cost, then divide that result by the product's price:

Margin=(2-1)/2

Margin=1/2

Margin=0.5 → 50%

Thus, the margin on price calculates to 50%.

Response:

(a) Cash flow generated from operating activities = 115,000

(b) Operating cash flow (NCOA) to current liabilities (CL):

Total current liabilities = 22000+9000 = 31000

NCOA relative to CL = 115,000/31000 = 3.71

Clarification:

Income Statement

$

Revenues 750,000

Cost of Goods Sold (470,000)

Gross profit 280,000

Salaries expenses (110,000)

Rental expenses (42,000)

Insurance costs (15,000)

Net Profit 113,000

Cash flow Statement

Net Profit 113,000

Cash flow derived from operating activities:

Increase in Accounts Receivable (54,000-49,000) (5,000)

Reduction in Inventories (66,000-60,000) 6,000

Growth in prepaid Insurance (8000-7000) (1000)

Rise in Accounts Payable (22000-18000) 4000

Decrease in wages payable (11000-9000) (2000)

Total increase in cash flow from operating activities 115,000