Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
Answer:
Total monthly saving = $1,315
Explanation:
Given:
Oakland Los Angeles
Cost Housing $565 $1200
Food $545 $655
Health Care $245 $495
Taxes $450 $625
Other Necessities $350 $495
Find:
Total monthly saving
Computation:
Saving in house = $1200 - $565 = $635
Saving in food = $655 - $545 = $110
Saving in health care = $495 - $245 = $250
Saving in taxes = $625 - $450 = $175
Saving in necessities = $495 - $350 = $145
Total monthly saving = $635+$110+$250+$175+$145
Total monthly saving = $1,315
Answer: Ranking appraisal method
Explanation:
The firm where Gillian work appraises employees using the ranking appraisal method.
Ranking appraisal method: This is a traditional appraisal method in which employees are compared with each other for the purpose of determining their worth. It is the oldest and simplest form of appraisal.
Employees are ranked based on their performance, that is, from the highest to the lowest performing employee or from the lowest to the highest performing employee. The ranking in the form of first position to the last position. Every employee strives to come first and be ahead of each other.
This type of appraisal encourages employees to compete healthily with each other so as to have a better ranking score. Employees become more productive and it increases the business output.
However, it is difficult to appraise employees using the ranking method when there are a large number of employees involved with different behavioural traits.
Answer:
<em>Product X and Z should be processed further because the additional sales revenue is greater that further processing cost which leads to a profit. </em>
<em>Product Y should not be processed further because doing so would lead to a loss</em>
Explanation:
WP Corporation should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point (i.e $92,000) are irrelevant to the decision to process further .
X Y Z
Sales value at split of point 23 24 25
Sales value after split off point <u> 27</u> <u> 27 </u> <u>32</u>
Additional sales value 4 3 7
Further processing cost <u>( 2)</u> <u>( 4 ) </u> <u>( 4)</u>
Net income?(loss) 2 (1 ) 3
Product X and Z should be processed further because the additional sales revenue is greater that further processing cost, which leads to a profit.
Product Y should not be processed further because doing so would lead to a loss
ROI as a financial ratio is calculated as follows:
ROI = Net profit/Total investments
In the current case,
Net profit = Net operating income = $700,000
Total investments = Operating assets = $600,000
After purchasing the new machine,
Total investments = 600,000*1.08 = $648,000
Therefore, the new ROI is;
ROI = 700,000/648,000 ≈ 1.08 = 108%
