Board Query 1 (latest update 2026 – 2027)
Questions and Answers for FINAL COMP
XM EXAM {Grade A}
Baldwin's EBIT (Earnings Before Interest and Taxes) last year was $21,771,033. What
was Baldwin's net profit?
$223,085
$167,340,889
$11,174,773
$10,701,648 - correct answer $11,174,773
Correct! Go to the Front Page of inquirer and look for Baldwin's EBIT.
Your company expects profits to be close to $4,000,000. The Board has instructed you
to increase retained earnings by approximately $2,000,000. What dividend amount,
per share, will you pay this year.
$6.40
$1.80
$5.10
$0.97 - correct answer $0.97
Correct! Go to Page 2 of Inquirer. Note your company's shares outstanding under the
Shares column. Take $2M (of your projected profit) and divide it by your shares
outstanding.
, Board Query 1 (latest update 2026 – 2027)
Questions and Answers for FINAL COMP
XM EXAM {Grade A}
Last year, Chester Company's Cone product had a higher contribution margin
percentage compared to their Creak product. However, Creak contribution margin (in
dollars) is much higher. This is because:
a) Creak's labor and material costs were substantially higher than Cone's.
b) Cone has no inventory.
c) Creak's sales were substantially higher than Cone's. - correct answer c) Creak's sales
were substantially higher than Cone's.
Correct! Go to Chester Company's Annual Report in the Inquirer. Turn to the Income
Statement. Notice the difference between Creak's sales and Cone's sales.
Digby's revenues were $118,965,138 last year. What percentage went to their
marketing budgets?
11.1% (SG&A/Revenue)
6.5% (Promo&Sales/Revenue)
3.2% (Promo/Revenue)
3.3% (Sales/Revenue) - correct answer 6.5% (Promo&Sales/Revenue)
Correct! Go to Digby Company's Annual Report in the Inquirer. Turn to the Income
Statement. Find each products' promo and sales budgets and take the sum of them.
Then, take the total and divide it by Digby's total sales.
Consider the cost to separate (terminate) employees at $5,000 per worker (severance
pay, etc.). Consider the cost of training workers at $20 per hour. Consider the cost of
Questions and Answers for FINAL COMP
XM EXAM {Grade A}
Baldwin's EBIT (Earnings Before Interest and Taxes) last year was $21,771,033. What
was Baldwin's net profit?
$223,085
$167,340,889
$11,174,773
$10,701,648 - correct answer $11,174,773
Correct! Go to the Front Page of inquirer and look for Baldwin's EBIT.
Your company expects profits to be close to $4,000,000. The Board has instructed you
to increase retained earnings by approximately $2,000,000. What dividend amount,
per share, will you pay this year.
$6.40
$1.80
$5.10
$0.97 - correct answer $0.97
Correct! Go to Page 2 of Inquirer. Note your company's shares outstanding under the
Shares column. Take $2M (of your projected profit) and divide it by your shares
outstanding.
, Board Query 1 (latest update 2026 – 2027)
Questions and Answers for FINAL COMP
XM EXAM {Grade A}
Last year, Chester Company's Cone product had a higher contribution margin
percentage compared to their Creak product. However, Creak contribution margin (in
dollars) is much higher. This is because:
a) Creak's labor and material costs were substantially higher than Cone's.
b) Cone has no inventory.
c) Creak's sales were substantially higher than Cone's. - correct answer c) Creak's sales
were substantially higher than Cone's.
Correct! Go to Chester Company's Annual Report in the Inquirer. Turn to the Income
Statement. Notice the difference between Creak's sales and Cone's sales.
Digby's revenues were $118,965,138 last year. What percentage went to their
marketing budgets?
11.1% (SG&A/Revenue)
6.5% (Promo&Sales/Revenue)
3.2% (Promo/Revenue)
3.3% (Sales/Revenue) - correct answer 6.5% (Promo&Sales/Revenue)
Correct! Go to Digby Company's Annual Report in the Inquirer. Turn to the Income
Statement. Find each products' promo and sales budgets and take the sum of them.
Then, take the total and divide it by Digby's total sales.
Consider the cost to separate (terminate) employees at $5,000 per worker (severance
pay, etc.). Consider the cost of training workers at $20 per hour. Consider the cost of
