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guapka [62]
3 years ago
14

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

sales $ 33,200 $ 86,900 Cost of goods sold (15,440 ) (63,050 ) Gross margin 17,760 23,850 Less: Operating exp. Selling and admin. exp. (11,760 ) (15,348 ) Net income $ 6,000 $ 8,502 *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Denver and Reno. (Round your answers to the nearest whole number.)
Business
1 answer:
Lynna [10]3 years ago
6 0

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver  = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver  = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

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B) Single agency.

Explanation:

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3 years ago
Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 390,000 Variabl
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Answer:

the total contribution margin is $245,700

Explanation:

The computation of the total contribution margin in the case when the sales volume rise by 40% is shown below:

Since the sales volume is rise so the contribution margin is also rise by 40%

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5 0
3 years ago
1. You are investing $100 today in a savings account at your local bank. Which one of the following termsrefers to the value of
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3.Which of the following is not a characteristic of a vertical organizational structure? A. Greater efficiency in handling uncom
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Answer:

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The rules emanate from top management and are transmitted down by each division, department, until they reach employees at the lower level of the company.

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These kind of organizations may be little encouraging for the lower levels, as they just must follow the rules and are not able to implement new procedures by themselves. Thus, it is true that <em>"B. Lower employee morale and satisfaction"</em> may undermine the lowers levels and some good employess would migrate to other enterpises where they can develop their ideas. Thi si a clar disavantage.

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