The following information is provided for each division. Investment Center Net Income Average Assets Cameras and camcorders $ 4,
1 answer:
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Answer:
correct option is a. $36,000
Explanation:
given data
labor cost = $360,000
move material per year = 600,000 pounds
to find out
material handling cost
solution
we find here first Labor Cost per pound of material that is express as
Labor Cost per pound of material = Labor Cost ÷ Number of Pounds of material .......................1
Labor Cost per pound of material =
Labor Cost per pound of material = $ .6 per pound of material
=360000/600000= $0.6 per pound of material
so we can say that 60000 pounds are moved in March so cost will be
60000 pounds are move cost = 60000 × $0.6
60000 pounds are move cost = $36000
so correct option is a. $36,000
Answer:
Gross profit percentage = Gross profit / Net sales
= (Net sales - COGS) / Net sales
= (250,000 - 150,000) / 250,000
= 40%
Return on sales ratio = EBIT / Net sales
= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales
= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000
= 18%
<u>With new product:</u>
Gross profit percentage = Gross profit / Net sales
= (Net sales - COGS) / Net sales
= (250,000 + 45,000 - 150,000 - 38,000) / (250,000 + 45,000)
= 36.3%
Return on sales ratio = EBIT / Net sales
= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales
= (250,000 + 45,000 - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)
= 52,000 / 295,000
= 17.6%
