A company manufactures three products, A, B, and C from a single raw material input. Product C can be sold at the split off point for total revenues of $53,000 or it can be processed further at a total cost of $15,000 and then sold for $71,000. Product C:. 1. should be sold at the split-off point, rather than processed further.
2. would increase the company's overall net operating income by $18,000 if processed further and then sold.
3. would increase the company's overall net operating income by $68,000 if processed further and then sold.
4. would increase the company's overall net operating income by $2,000 if processed further and then sold.

Classifying inflows and outflows of cash classify each of the following items as an inflow (i) or an outflow (o) of cash, or as neither (n). lg 2 lg 2 item change ($) item change ($) cash +100 accounts receivable −700 accounts payable −1,000 net profits +600 notes payable +500 depreciation +100 long-term debt −2,000 repurchase of stock +600 inventory +200 cash dividends +800 fixed assets +400 sale of stock +1,000

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

You decided to charge $100 for your new computer game, but people are not buying it. what could you do to encourage people to buy your game?