Answer:
13.56%
Explanation:
For the computation of return in equity first we need to follow some steps which are shown below:-
D/A = Debt ÷ Total assets
Debt = $200,000 × 65%
= $130,000
Interest expense = $130,000 × 8%
= $10,400
Total assets = Total liabilities + Total equity
Total equity = $200,000 - $130,000
= $70,000
Net income = (EBIT - Interest expense) × (1 - Tax rate)
= ($25,000 - $10,400) × (1 - 0.35)
= $9,490
ROE = Net income ÷ Equity
= $9,490 ÷ $70,000
= 13.56%
Answer:
The correct answer is D) The process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
Explanation:
The definition of marketing research is process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face
Answer:
$25,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Using this formula
Goodwill=Beginning cash-Ending book value-Fair value tangible assets-Fair value intangible assets
Let plug in the formula
Goodwill=$4,700,000-$4,000,000-$525,000-$150,000
Goodwill=$25,000
Therefore the goodwill that the company should be recognized by Rommer Company when recording the purchase of Daley Inc. $25,000
Answer:
Material Price Variance = $2,500 Unfavorable
Explanation:
Standard fabric for each cap = 2.00 yard
Standard price per yard = $2.00 per yard
Actual price per yard = $2.10
Actual Quantity = 25,000 yards
Materials price variance = (Standard price - Actual Price) 
Actual Quantity
= ($2.00 - $2.10) 25,000 = - $0.10 25,000
= - $2,500
Since it is negative in value it is Unfavorable
Answer and Explanation:
The preparation of the analysis that depicts the total cost saving is presented below:
Particulars Make Buy Net Income or decrease
Variable
Manufacturing Cost $73,500 - $73,500
(14,700 × $5)
Fixed
Manufacturing cost $29,400 $29,400 -
(14,700 × $2)
Purchase price
(14,700 × $6) - $88,200 ($88,200)
Total annual cost $102,900 $117,600 ($14,700)
Based on the total annual cost the company should make the product as it saves the cost by $14,700
