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Stolb23 [73]
3 years ago
15

11. Brooke Company desires net income of $720,000 when it has $2,000,000 of fixed costs and variable costs of 60% of sales. Cont

ribution margin equals a. $6,800,000. b. $2,720,000. c. $1,280,000. d. $1,200,000.
Business
1 answer:
Mila [183]3 years ago
8 0

Answer:

b. $2,720,000

Explanation:

The contribution margin is what is left after subtracting the variable cost from the sales.

From there, the company pays their fixed cost and the rest is net income.

In this case you have a company desiring to get 720,000 net income after paying their 2,000,000 fixed cost

So we come up with with formula:

Contribution Margin - Fixed Cost = Net Income

Replacing the know values, we get the unknow value. Like it was a solve for X question:

X - 2,000,000 = 720,000\\X = 2,000,000 + 720,000\\X = 2,720,000

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For a recent year L’Oreal reported operating profit of €3,385 (in millions) for its Cosmetics division. Total assets were €12,88
aivan3 [116]

Answer:

The correct answer is 26.05%.

Explanation:

According to the scenario, the given data are as follows:

Beginning Assets = 12,888 ( million)

Ending Assets = 13,099 (million)

Operating profit = 3,385 (million)

So, Average Assets for the year = (12,888 + 13,099) ÷ 2 = 12,993.5 (million)

So, we can calculate the return on investment by using following formula:

Return on investment = Operating profit ÷ Average assets for the year

By putting the value, we get

Return on investment = 3,385 ÷ 12,993.5 (million)

= 0.2605 or 26.05%

8 0
3 years ago
Define the following terms in your own words?
meriva
Activity is something you do for fun 
responsibility is something you have to take care of yourself 
accomplishment is something you ill or have accomplished
skill is something that you were born to be able to do 
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3 0
3 years ago
The Two Sisters has a return on assets of 9 percent and a dividend payout ratio of 75 percent. What is the internal growth rate
Anettt [7]

The internal growth rate of a firm is best described as the: A. minimum growth rate achievable assuming a 100 percent retention ratio. B. minimum. The tax rate and the dividend payout ratio will be held constant. Current and. The Two Sisters has a 9 percent return on assets and a 75 percent retention ratio.

hope this helps.

7 0
2 years ago
Q. A country's comparative advantage in the extraction of commodities most likely stems from its: A. high labour to capital rati
Andru [333]

Answer:

B. large amount of natural resources

Explanation:

Comparative advantage is a country's ability to produce a product or service for a lower opportunity cost than rival countries.  Opportunity costs are the benefits given up in the extraction process. If a  country has a large amount of natural resources, it will use fewer resources in the extraction process than other countries. The trade-off costs will be so little compared to the benefits.

Other countries will find it cheaper to import from a country with large natural resources. For example, oil-rich nations have a comparative advantage in the extraction and processing of oil and oil by-products.

4 0
3 years ago
Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wante
Arte-miy333 [17]

Answer:

$400

Explanation:

The computation of the corrected operating income is shown below:

= Sales revenue - costs of goods sold - SG&A Expense

= $1,600 - $800 - $400

= $400

The gross profit would be

= Sales revenue - costs of goods sold

And the operating income would be

= Gross profit - SG&A Expense

For computing the operating income, we deduct the costs of goods sold and the SG&A Expense from the sales revenue

6 0
3 years ago
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