Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be 150,000,000.
If selling, general, and administrative expenses (SGA) are historically 18 of sales, what are the expected SGA expenses (in dollars)?
A) 18,000,000
B) 27,000,000
C) 30,000,000
D) 41,000,000
Question 2
Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy.
Which of the following is true with regard to the settlement for the end tables in this case?
A) Loss to a pair or set is excluded under the policy.
B) The insurer will pay the difference in actual cash value of the property before and after the loss.
C) The insurer will pay the replacement cost of the loss.
D) If a partial loss to a pair or set occurs, the insurer is liable for replacement of the entire pair or set.
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