Use the information below to answer questions 4-7. drake company's income statement for the most recent year appears below:

sales (26,000 $650,000
less: variable 442,000
contribution 208,000
less: fixed 234,000
net operating $ (26,000)

the break-even point in sales dollars is: (a) $731,250 (b) $676,000 (c) $675,000 (d) $720,000

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.

Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?

Matthew decides to buy expensive designer jeans. less expensive jeans are available, but the added cost of the designer brand is worth it to matthew most likely because