1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable...


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1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will<br>mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to<br>$50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?<br>$1,000,000<br>$1,030,000<br>$980,000<br>$1,050,000<br>2. Company O has a new product that has the following cost per unit: direct materials - $10, direct labor - $7, and overhead - $3. If the sales manager wants<br>to achieve a gross margin of 25% of cost for the particular product. What would be the selling price per unit?<br>$25<br>$36<br>$45<br>$56<br>3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be<br>An increase in sales price<br>A decrease in fixed cost<br>An increase in break-even point in units<br>A decrease in break-even point in units<br>

Extracted text: 1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to $50,000. How much would be the net cash receipts of Company B as a result of the bond issuance? $1,000,000 $1,030,000 $980,000 $1,050,000 2. Company O has a new product that has the following cost per unit: direct materials - $10, direct labor - $7, and overhead - $3. If the sales manager wants to achieve a gross margin of 25% of cost for the particular product. What would be the selling price per unit? $25 $36 $45 $56 3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be An increase in sales price A decrease in fixed cost An increase in break-even point in units A decrease in break-even point in units

Jun 11, 2022
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