Free CMA Mock Exam – Practice Online Confidently

Which relationship marketing level is appropriate for a low unit profit margin and many customers? 

A company enters into an agreement with a firm that will factor the company’s accounts receivable. The factor agrees to buy the company’s receivables, which average $100,000 per month and have an average collection period of 30 days. The factor will advance up to 80% of the face value of receivables at an annual rate of 10% and charge a fee of 2% on all receivables purchased. The controller of the company estimates that the company would save $18,000 in collection expenses over the year. Fees and interest are not deducted in advance. Assuming a 360-day year, what is the annual cost of financing? 

Fitzgerald Company is planning to acquire a $250,000 machine that will provide increasedefficiencies, thereby reducing annual operating costs by $80,000. The machine will be depreciated bythe straight-line method over a 5-year life with no salvage value at the end of 5 years. Assuming a40% income tax rate, the machine’s payback period is 

Which of the following is not a category of relevant cash flows’? 

What form of marketing assumes most people in the same demographic will react similarly to one marketing message?