Answer: Return on sales is calculated based on sales volume and not profit
Explanation:
This can be explained by understanding the scenario; the price that discounters pay is lower than any other channel. Discounters have high variable cost, they only pay $52 for the Russel with 41percent return on sales. They also larger fixed costs than the other channels and the return on sales is calculated based on sales volume and not profit.
Answer:
3.15 times
Explanation:
Asset turnover = Sales revenue / Average total assets
Asset turnover = $1,135,420 / $360,600
Asset turnover = 3.15 times
Answer:
a. sunk costs.
Explanation:
Sunk cost is the amount which is already invested or incurred before any project is initiated. This cost is permanently lost and cannot be recovered. The business managers avoid incorporating sunk cost in decision making process.
The correct answer is sunk cost because it doesn't complicate capital investment analysis. These costs are not considered when making business decisions or analysis of capital investments.
Answer:
(a) Annual dividend = Dividend rate × par value × number of shares outstanding
= 7% × $60 × 40,000
= $168,000
Semi‑annual dividend = 
= 
= $84,000
(b) Annual dividend = Dividend rate × number of shares outstanding
= $5.20 × 171,600
= $892,320
Arrears of $892,320 are owed for last year as well, so the total dividends owed would be:
$892,320 × 2 years
= $1,784,640
(c) Annual dividend = Dividend rate × stated value × number of shares outstanding
= 4.8% × $100 × 445,000
= $2,136,000
Quarterly dividend = =
= 
= $534,000
