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Deffense [45]
3 years ago
7

zzy Division of Marine Boats Corporation had the following results last year​ (in thousands). Sales $ 4 comma 700 comma 000 Oper

ating income $ 600 comma 000 Total assets $ 3 comma 600 comma 000 Current liabilities $ 220 comma 000 ​Management's target rate of return is 12​% and the weighted average cost of capital is 5​%. What is the Izzy​ Division's Residual Income​ (RI)? A. $ 72 comma 000 B. $ 432 comma 000 C. $ 168 comma 000 D. $ 600 comma 000
Business
1 answer:
o-na [289]3 years ago
3 0

Answer:

C. $ 168 comma 000

Explanation:

The computation of the residual income is shown below:

= Operating income - minimum return

where,  

Operating income is $600,000

And, the minimum return equal to

= Invested asset amount × minimum rate of return

= $3,600,000 × 12%

= $432,000

Now put these values to the above formula  

So, the value would equal to  

= $600,000 - $432,000

= $168,000

We simply applied the above formula

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For the Somerset Furniture Company described in Case Problem 10.1 in Chapter 10, determine the product lead time by developing a
m_a_m_a [10]

Answer:

Possible transportation modes are discussed below in detail.

Explanation:

• Purchase Request: 12 - 25 days

• Process buy request abroad: 10 - 20 days.

• Manufacturing process: 60 days

• Transport from plant to port: 1-14 days

• Paperwork: 5 - 10 days

• Wait for the container: 1 - 7 days*

• Load compartments: 3 - 6 days

• Ship days: 28 days

• Custom clearance: 7 – 14 days

• Warehouse transportation: 1-3 days

Delivery time is around 136 minimum days and  191  maximum days. Likewise,  the average delivery time is 163 days. Companies such as international trade specialist, trade logistics companies and Internet exchanges can help the company to reduce the delivery time by facilitating the trade channels. These intermediate channels can help to attain objectives in timely manner.

5 0
3 years ago
You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers
lukranit [14]

Answer: $80

Explanation:

The opportunity cost is regarded as the real cost of the alternative that was left or forgone.

Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.

Therefore, the correct option is E.

5 0
3 years ago
Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save mon
Llana [10]

Answer: The income effect

Explanation: The income effect refers to the effect on the purchasing power of the consumer when his or her income level changes.

In the given case, Natalie was price conscious  and used to buy lower priced goods with the objective of saving money. When her income rises she starts buying expensive goods as her purchasing power increases with increase in income.

Hence from the above we can conclude that the correct option is A.

7 0
3 years ago
Based on the following data for the current year, what is the inventory turnover?
GenaCL600 [577]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is being sold or used during a given period of time.

A high inventory turnover means a company is selling goods very quickly and that demand for their product exists. Low inventory turnover means weaker sales and ing demand for a company's products.

Inventory turnover = Cost of goods sold/Average inventory

Average inventory is:

($110,000 + $90,000)/2

=$100,000

Therefore, inventory turnover ratio:

$270,00//$100,000

2.7

3 0
3 years ago
Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased
frutty [35]

Answer:

Wages in US would decrease

Wages in Mexico would increase

Explanation:

The increase in the supply of labour in the US while demand remains unchanged would lead to an excess of supply over demand. This would cause equilibrium wage to fall and quantity to rise.

While in the US, the supply of labour would fall. This would increase wage.

I hope my answer helps you

8 0
3 years ago
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