4. A stock trading company that had its offices in the World Trade Center in 2001 could have used a(n) __________ to make different assumptions about market events such as future bull markets, bear markets, day trader legislation, dot-com companies driving the market, etc. There is little chance that it would have assumed a deadly terrorist attack. A. SWOT analysis B. societal audit C. industry forecast D. scenario analysis Answer: ____D______ 14. The current year’s financial statements disclosed several large expenditures for highly technical automated machinery. As a result of these purchases, the analyst would be certain that the entity increased its: A. breakeven point. B. variable expense per unit of production. C. fixed expense per unit of production. D. net income. Answer: ______A____ 17. When analyzing a going concern, the entity’s unadjusted return on equity exceeds its unadjusted return on assets, except when: A. asset turnover is less than one. B. the firm has a net loss. C. the cost of borrowing is very high. D. equity capital exceeds long-term debt capital. Answer: ____D______ 18. General Hospital has overall variable costs of 75% of total revenues and fixed costs of $50 million per year. There are 50,000 patient-days estimated for next year. What is the break-even point expressed in total revenue? A. $200 Million B. $50 Million C. $24 Million D. $12.5 Million Answer: __A__ 20. Bull Company manufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variable factory overhead $4; and fixed factory overhead $2. The fixed factory overhead costs are unavoidable. Assuming no other use of the facilities, the highest price that Bull Company should pay for this part in a make-buy decision is: A. $12. B. $14. C. $8. D. $11. Answer: ___C_______