A nutritional study is released that touts the benefits of eating cereal for breakfast. Concurrently, a new type of grain is invented that reduces the input costs in producing cereal. What will happen to the equilibrium price and the quantity consumed of bananas, a complement to breakfast cereal?

• A.The quantity consumed of bananas will increase, and the effect on price cannot be determined.
• B.The price and quantity consumed of bananas will not change.
• C.The price of bananas will increase, and the quantity consumed will decrease.
• D.Both the price of bananas and the quantity consumed will decrease.

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A company had the following trial balance on Dec. 31, 2013:

What is the company's net income for 2013?

• A.$45,000
• B.$170,000
• C.$95,000
• D.$120,000

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An apparel company is negotiating a new contract with one of its fabric suppliers. Under which of the following conditions will the apparel company have power to bargain for a lower price in the negotiations?

• A.If the apparel company's employees would need training to use a new supplier's materials
• B.If the supplier has several competitors and only a few customers
• C.If the apparel industry is growing quickly
• D.If quality of its fabric is important to the apparel company

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Company B is evaluating whether to repair or replace a piece of plant equipment. Which of the following factors would NOT be taken into consideration when determining the relevant cash flows?

• A.Operating costs of the repaired asset
• B.Estimated useful life of the repaired asset for tax purposes
• C.Estimated cost of the repairs
• D.Plan to capitalize the cost of the repairs for financial reporting purposes

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A company manager commissions a report to study the relationship between sales volume (in thousands of units) and the number of computers in each of the company's offices.

When the manager receives the report, however, the p-value for the independent variable is missing. Based on the rest of the regression output, which of the following numbers is the correct p-value?

• A.0.0490
• B.0.0023
• C.0.6196
• D.0.0095

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