Question: A) B) C) D) E) Cash conversion cycle = Days' Sales in Accounts Receivable + Days' Sales in Inventory - Days Payable Outstanding 1) The

A) B) C) D) E) Cash conversion cycle = Days' Sales in Accounts Receivable + Days' Sales in Inventory - Days Payable Outstanding 1) The Roseanne Rosannadana Company produces language books and had the following results of operations for the past year: Sales (22,400 books at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 224,000 A foreign company (whose sales will not affect Rosannadana's market) offers to buy 5,600 books at $7.50 per unit. In addition to variable costs, selling these books would increase fixed overhead by $840 and fixed selling and administrative costs by $420. Assuming The Roseanne Rosannadana Company has excess capacity and accepts the offer, its profits will: 44,800 89,600 4,480 85,120 Decrease by $6,020. Increase by $8,400. Decrease by $8,400. Increase by $7,280. Increase by $6,020. 17,920 44,800 $ 22,400

Cash conversion cycle = Days' Sales in Accounts Receivable + Days' Sales in Inventory - Days Payable Outstanding 1) The Roseanne Rosannadana Company produces language books and had the following A foreign company (whose sales will not affect Rosannadana's market) offers to buy 5,600 books at $7.50 per unit. In addition to variable costs, selling these books would increase fixed overhead by $840 and fixed selling and administrative costs by $420. Assuming The Roseanne Rosannadana Company has excess capacity and accepts the offer, its profits will: A) Decrease by $6,020. B) Increase by $8,400. C) Decrease by $8,400. D) Increase by $7,280. E) Increase by $6,020

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