NO.141 Mobile telephone providers often require customers to enter two-year contracts, with the stipulation that these customers pay a termination fee if they would like to end their contracts early. A new mobile telephone provider offers to pay customers’ early termination fees if they are currently in a contract but would like to change providers. If the goal of the company is to gain as many new customers as possible, it might be offering this promotion in order to:

NO.142 After thorough market research, a company discovers that there are three well-defined customer segments for a new product it plans to release. Customer segment A represents young professionals, who each have a willingness to pay (WTP) of $45. Customer segment B represents college students, who each have a WTP of $25. Customer segment C represents mid-career professionals, who each have a WTP of $100. What price should the company charge for its new product in order to maximize revenues? Assume that each customer segment has the same number of individual customers.

NO.143 Which of the following companies could expect to have the fewest competitors? (Select all that apply.)

NO.144 Many people argue that giving patents for medicines is unfair, because it prevents many people from accessing the products they need to live a healthy life. Why do governments allow patents for medicines?

NO.145 What denominator amounts does an analyst use to calculate the common size balance sheet and income statement?

NO.146 An executive at an insurance company has developed a new method for determining monthly rates for drivers insured by the company. Using a regression analysis of different factors, the executive has come to the conclusion that the two most important factors are the value of the carand the number of miles the driver lives from the city. The partial regression output table provided by the data is as follows:

Given this information, how much could a driver expect to pay per month for a car worth $45,000 located three miles from the city center?

NO.147 On a balance sheet, assets are arranged in the order of:

NO.148 A student is deciding whether to attend a two-year graduate school program. The tuition is $12,500 per year and the cost of books and supplies is an additional $1,000 per year. The studentcould work instead of going to graduate school and earn $50,000 per year. What is the economic cost of attending graduate school for the student?

NO.149 Which of the following pieces of information can be determined by looking at an income statement?

NO.150 Which of the following options would MOST likely be considered a variable cost?

NO.151 In Dec. of 2013, a company signed a promissory note and recorded a note payable of $150,000. This note is payable in three equal annual installments beginning from Dec. of 2014. How should the company report the note payable on its Dec. 31, 2013 balance sheet?

NO.152 A student is interested in which factors affect the U.S. poverty rate and develops a linear regression model. The student uses poverty rate in all 50
U.S. states and Washington D.C. as the dependent variable and wants to relate it to the following variables:
The unemployment rate
The percent of the adult (over 25) population with at least a bachelor’s degree
The percent of the population without health insurance
The percent of the adult (over 25) population without a high school diploma or equivalent
The percent of households with children under 18 run by a single mother
The student collects data from each state and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below.

Based on these results, select the independent variables that have a coefficient that is statistically significant at the 5% level. (Select all that apply.)

NO.153 A doctor wants to predict the probability that a woman develops breast cancer based on her age, race, and diet. Which of the following statistical tools is the MOST suitable for this study?

NO.154 A technology company normally sees increased revenues for its cell phones when it raises
prices. However, when the company released an updated version of the phone and charged a higher price, revenues fell. What MOST likely happened to the cell phone market?

NO.155 A company paid $150,000 of income tax for 2013. During the year, the company recognized $80,000 of interest revenue from municipal bonds. Income from municipal bonds are tax exempt. The company’s net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report as its pretax accounting income for 2013?

NO.156 Company A is a large passenger airline. As part of their annual internal budget process they do a sensitivity analysis of their revenue forecast over their existing routes and schedules. The analysis evaluates the impact of a three percent decline in passenger revenue compared to a three percent increase. Which of the following expenses would show the largest change in the analysis?

NO.157 Which of the following measures can reduce multicollinearity in multiple regression? (Select all that apply.)

NO.158 The only grocery store in a town has recently seen its profits decrease. An executive at the grocery store has been challenged to find a way to reverse this trend without losing significant sales. What is a possible technique the company can use to increase its producer surplus?

NO.159 A company reported the following information for 2013:

During 2013, the company purchased new inventory of $160,000. What amount should the company report as cost of goods sold on its 2013 income statement?

NO.160 A restaurant that sells hamburgers is considering lowering prices to gain market share. The restaurant pays $3,000 a month for the building it occupies, and ingredients and labor cost $2.50 per hamburger. If the restaurant expects to sell 2,000 hamburgers a month, what is the minimum price it could charge?

NO.161 A company provided the following information on its financial statements for 2013: What is the company’s accounts receivable turnover ratio for 2013?