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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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Marketing mix

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The price is the value which is given to the customers

The product is the item which is to be shown to the customers

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6 Carla would like to buy a dress, a dresser for her bedroom, and a home theater system. She has one month's worth of living exp
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The answer to the case illustrated in the question given is (C) No; she should save more for her emergency fund because she has saved less than the recommended amount.

This is because her emergency fund is actually less than the amount that most people recommend you should have: which is at least around 3 months’ worth of your living expense. It is even better if you can save for at least 6 months’ worth of your living expense.

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3 years ago
What two things do you consider when evaluating the time value of money?
White raven [17]

Items that are not a nesscity?

If so I think about what i need first because thats more important

And I think about how much im about to spend... if it is more that what u have or rlly close its not worth it..

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3 years ago
A stock's price is simply the current market price, and it is easily observed for publicly traded companies. By contrast, intrin
masha68 [24]

Answer:

The correct answer is true.

Explanation:

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3 years ago
With only a​ part-time job and the need for a professional​ wardrobe, Rachel quickly maxed out her credit card the summer after
choli [55]

Answer:

a. It will take her 5 years to pay for her wardrobe

b. She should shop for a new card once she is done paying for this one.

c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.

Explanation:

Use the formula below to determine the number of months it would take Rachel to pay off her debt;

C *{1-(1+r)^(-n×t)}/(r/n)=PV

where;

C=annuity

r=annual interest rate

n=number of compounding periods in a year

t=number of years

PV=present value

In our case;

PV=$10,574

C=$260

r=16%=16/100=0.16

n=12

t=unknown

replacing;

260*{1-(1+0.16/12)^(-12×t)}/(0.16/12)=10,574

1-(1+0.16/12)^(-12×t)={10,574×(0.16/12)}/260

1-{1.013^(-12 t)}=0.542

(1-0.542)=1.013^(-12 t)

ln 0.458=-12 t (ln 1.013)

t=-ln 0.458/12×ln 1.013

t=5

It will take her 5 years to pay for her wardrobe

b. She should shop for a new card once she is done paying for this one.

c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.

3 0
3 years ago
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