Passage 1
Last year was a satisfactory year for MacGregor's with sales rising 15% compared to the previous twelve months. The profit before tax increased by 22% and the after-tax profit showed an increase of 31%. The disparity between the pre-tax and after-tax figures was due to the increase in the proportion of our profits earned overseas. These profits generally attracted a lower rate of tax than the rate charged in the UK.
Engineering Division
The performance was good not only in relation to previous years but also in comparison with other British engineering companies. The return on capital increased by 31% and the Division, even after capital expenditure of over &2 million, generated in excess ofe 3 million in cash for the group. We intend to implement expansion plans for the Division which include investment in new manufacturing facilities and a major overhaul of some existing equipment.
Plastic Division
Despite the difficulties in the home market trading levels were maintained as a result of our successful concentration on export markets. Our Belgian subsidiary, however, experienced such a low volume of orders that it was unable to do more than contain its losses. This is a company which, it should be noted, has a high break-even point.
Finance
The company's liquidity is so strong that our net borrowings are less than 25% of our total share capital and reserves. As a result we have a borrowing capacity of several million pounds. If we require higher investment as consequence of an improvemer in trade,we intend to obtain funds by bank borrowing which, despite high interest rates, would be the cheapest way of raising money. Should additional cash be required for an acquisition, the board will consider the possibility of raising more capital.
Earnings
The net worth of our ordinary shares is 154p compared with a market price of half that figure. The earnings are 15.8p per share and the total dividend for the year amounts to 5.2p.There is every reason to be optimistic about the company's prospect in the current year. The higher the inflation rate, however, the more difficult it will be to maintain our profit position. Last year, I asked you to be realistic in your expectations and to remember the difficult trading conditions. This year I repeat that advice in view of the world economic recession.
"This is a company which, it should be noted, has a high break-even point. "This sentence tells us that ____
A、MacGregor's Belgian subsidiary usually suffers great losses
B、the cost of MacGregor's Belgian subsidiary is very high
C、the income of MacGregor's Belgian subsidiary is very large
D、MacGregor's Belgian subsidiary maintains high balance income and its expenditure
【正确答案】：D
【名师解析】:该句子表明的是MacGregor's的比利时子公司具有较高的盈亏平衡点。这意味着该公司需要达到一个相对较高的销售量或收入水平才能开始盈利。选项D正确地反映了这一点，即比利时子公司需要维持高平衡收入和支出才能避免亏损，这与高盈亏平衡点的概念相符。其他选项要么与句子含义不符，要么没有提供足够的信息来支持它们。
