1. What is the break-even probability in the following case? A customer wishes to purchase a $2,000 item that has been marked up to 50% over cost. Assume all cash flows are discounted to present value and there is no chance of subsequent sales.
A. 55.67%
B. 66.67%
C. 77.67%
D. 88.67%
2. Which one of these is calculated as: 365 / (Cost of goods sold / Inventory)?
A. Days sales in inventory
B. Total asset turnover
C. Inventory turnover
D. Days sales in receivables
E. Capital intensity ratio