Test marketing, the consumers don’t even know it’s being tested
Answer:
Explanation:
A common sized income statement is a method of financial statement that express every line item on a financial statement as a percentage of sale for the ease of financial analysis
Tannenhill's % Industry average
Revenue 2,480,000 100 100%
Cost of Goods 1,587,200 64 70
Gross profit 892,800 36 30
Selling expenses 545600 22 17
Admin expenses 198400 8 7
Total ope. Expe. 744000 30 24
Ope. Income 148600 6 6
Other Revenue 49600 2 2
198400 8 8
Other Expenses 24800 1 1
PBIT 173600 7 7
Income Tax 74400 3 5
Net Income 99200 4 2
Answer:
Fragmented Retail system
Explanation:
A fragmented retail system can be defined as a market in which no firm can has or can exert any influence to move the market in a particular direction.
This simply means that a fragmented retail system is one in which no product or firm has a grip or major share in the market. This leaves the market to a lot of small and medium scaled businesses competing with larger companies.
From the question, it can be seen that there a lots of small stores that serves the neighborhood. This means that the small shops cater for the needs of people within its vicinity such that there isn't any need for visiting larger stores.
Cheers
Answer:
C) Company B has a higher operating return on assets than Company A, but Company A has a higher return on equity than Company B.
Explanation:
The B company has a minor debt ratio compared with company A. Which according to the following formula, permits to conclude it has a higher operating return.
Return on equity = Debt Ratio - Total Liabilities / Total Assets.
Answer:
The answer is $7,900
Explanation:
Formula of Residual Income=Net Operating Income-(minimum required rate of return*average operating assets)
Residual income (RI)=$143,700-($970,000*14%)
RI=$7,900
Further we can alsocalculate
Return on investment (ROI)=$143,700/$970,000=14.81%
