NEED HELP PLEASE. The questions have multiple choice answers that are provided.

1.

Macaulay Company has three product lines--D, E, and F. The following information is available.

Macaulay Company is thinking of dropping product line F because it is reporting an operating loss. Assume that $25,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

A. Operating income will decrease by $5,000.

B. Operating income will increase by $25,000.

C. Operating income will increase by $5,000.

D. Operating income will decrease by $25,000.

2.

Which of the following is a capital budgeting method that is used to screen potential investments?

A. Return on assets

B. Accounting rate of return

C. Debt-to-equity ratio

D. Acid test ratio

3.

Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame's operating income (loss) for this month.

A. ($625)

B. $9,000

C. $625

D. ($7,500)

4. The sales level at which operating income is zero is called breakeven point.

True OR False

5.

e-Bay Inc. provides the following information for the year 2015.

The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock.

A. 50 TIMES

B. 45 TIMES

C. 40 TIMES

D. 35 TIMES

Sales Variable costs Contribution margin Fixed expenses Operating income (loss) $40,000 $70,000 30,000 15,000 $30,000 40,000 20,000 10,000) 20,000 20,000 (15,000 15,000 (25,000) 15000) (15000 (25,000) S5,000 $5,000)