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arsen [322]
3 years ago
15

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporatio

n has a profit margin of 6 percent and its return on assets (investment) is 14 percent. What is its assets turnover? (Round your answer to 2 decimal places.)
Business
1 answer:
Savatey [412]3 years ago
8 0

Answer:

2.33

Explanation:

Given that,

Profit margin = 6%

Return on assets (Investment) = 14%

Using the Du Point method,

Profit margin × Total assets turnover = Return on assets (Investment)

6% × Total assets turnover = 14%

Therefore,

Total assets turnover = 14% ÷ 6%

                                   = 2.33

Hence, its assets turnover is 2.33

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Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail
nikklg [1K]

Answer:

a. 575 units

b. 107.83 orders

c.  3.38 days

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand = 62,000 disk

Ordering cost = $16

Carrying cost = $0.25 × 24% = $6

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{62,000}\times \text{\$16}}{\text{\$6}}}

= 575 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= 62,000 ÷ 575 units

= 107.83 orders

c. The frequently order would be

= Total number of days in a year ÷ number of orders in a year

= 365 days ÷ 107.83 orders

= 3.38 days

5 0
4 years ago
In​ 1982-84 dollars, the real average hourly wage rate in 2005 was ​$8.18 and in 2006 ​, it was ​$8.24 . In 2005 ​, the CPI was
Alona [7]

Answer:

the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively

Explanation:

The computation of the nominal wage rate in 2005 and in 2006 is shown below:

For the year 2005

= $8.18 × $195.3 ÷ 100

= 15.98

And, for the year 2006

= $8.24 × 201.60 ÷ 100

= 16.61

In this way it should be calculated

hence, the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively

7 0
3 years ago
.   What's the likely outcome of many people attempting to buy a small amount of goods? 
Olenka [21]
I think its deflation or inflation
4 0
3 years ago
Read 2 more answers
In 2021, Robert takes four key clients and their spouses out to dinner at a local restaurant. Business discussions occurred over
Zepler [3.9K]

The amount deductible by Robert for year 2021 against the meal and entertainment expenses will be 50% that is $420 from the total expense amount of $840.

<h3>What is business deductions?</h3>

The business deductions are the amounts those are allowed to be deducted while filling the income tax. There is certain criteria to deduct different expenses.

As per the IRS regulation, when the tax payer is self-employed then the amount that can be deducted against meal and entertainment can be 50% of the total expense.

Therefore, Robert can deduct only $420 from the taxable income.

Learn more about business deductions, here:

brainly.com/question/13870330

#SPJ1

8 0
2 years ago
Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.63 percent and semiannual payments. The bond mature
Butoxors [25]

Answer:

Market price of Bond = $4603.116669 rounded off to $4603.12

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 5000 * 0.0363 * 1/2 = $90.75

Total periods (n)= 23 * 2 = 46

r = 4.17% * 1/2 = 2.085% or 0.02085

The formula to calculate the price of the bonds today is attached.

Bond Price = 90.75 * [( 1 - (1+0.02085)^-46) / 0.02085]  +  5000 / (1+0.02085)^46

Bond Price = $4603.116669 rounded off to $4603.12

7 0
4 years ago
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