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NEW QUESTION: 1
Suppose company manufactures paint from a base color and adds tints to arrive at the final color. Suppose there are 10 tints and a final color is made by mixing any three of them with the base. There are 70 possible colors (10*9*8=720). Forecasting and planning production for 720 items is a difficult task. It is much easier if:
A. MPS is done at the component level
B. Production is planned at the level of the base color and the 10 tints. There are then only10 items with which to deal: the base color and each of the 10 tints.
C. None of these
D. Once a customer's order is received, the base color and the required tints can be combined (assembled) according to the order
Answer: B,D

NEW QUESTION: 2

A. Option C
B. Option B
C. Option A
D. Option D
E. Option E
Answer: A,C

NEW QUESTION: 3
An entity has a 50% gross margin, general and administrative expenses of US $50, interest expense of US $20, and profit of US $10 for the year just ended. If the corporate tax rate is
50%, the level of sales for the year just ended was:
A. US $135
B. US $90
C. US $150
D. US $180
Answer: D
Explanation:
Profit equals sales minus cost of sales, GSA expenses, interest, and tax. Given a 50% tax rate, profit before tax must have been US $20 [$10 profit -1_0 - 5 tax rate)]. Accordingly, profit before interest and tax must have been US $40$20 profit before tax + $20 interest), and the gross margin sales - cost of sales) must have been US $90$40 profit before interest and tax + $50 G&A expenses). If the gross margin is 50% of sales, sales equals US $180$90 gross margin - .5).

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