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Assoli18 [71]
3 years ago
5

Robichau Incorporated reported the following results from last year’s operations: Sales $ 6,300,000 Variable expenses 4,930,000

Contribution margin 1,370,000 Fixed expenses 803,000 Net operating income $ 567,000 Average operating assets $ 3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales $ 1,530,000 Contribution margin ratio 30% of sales Fixed expenses $ 306,000 The company’s minimum required rate of return is 20%. The Return on investment for this year's investment opportunity considered alone is closest to:
Business
1 answer:
photoshop1234 [79]3 years ago
5 0

Answer:

Return on Investment = 17%

Explanation:

Return on Investment = Net income from investment / Investment opportunity * 100

Where Net income from investment = (Sales * Contribution margin ratio) - Fixed expenses

Net income = ($1,530,000 * 30%) - $306,000

Net income = $459,000 - $306,000

Net income = $153,000

Return on Investment = $153,000 / $900,000 * 100

Return on Investment = 17%

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Which characteristic of organizational culture is present in a high degree at the law firm in the Think like a manager: Organiza
masya89 [10]

Answer:

Hierarchy

Explanation:

Often, managers are placed with superior authority than other employees of a firm. These employees are expected to respect the manager in their operations. When it comes to decision making they follow the hierarchy of staff members, that is from Top to Down level.

Thus, In a law firm we would expect a hierarchical structure that is based on years of practicing law.

5 0
3 years ago
Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the marke
Stells [14]

Answer:

the required rate of return for Barker's investor is 10.17%

Explanation:

<u><em>First, We have to calcualte the CAPM </em></u>

(Capital Assets Pricing Model)

Ke= r_f + \beta (r_m-r_f)

risk free = 0.02

premium market = (market rate - risk free) 0.047

beta(non diversifiable risk) = 1.1

Ke= 0.02 + 1.1 (0.047)

Ke 0.07170

now we add the inflation premium:

0.0717 + 0.03 = 0.1017 = <em>10.17%</em>

8 0
3 years ago
Individuals who are paid by someone in exchange for labor or service are referred to as:_____.
forsale [732]

Service providers are individuals who are paid by someone in exchange for labor or service  An organization that offers services to other organizations, such as consulting, legal, real estate, communications, storage, and processing, is known as a service provider (SP). A service provider is typically a third-party or outsourced supplier, though it is possible for it to be a member of the company it supports.

A organization might hire advisors, independent consultants, law companies, design studios, and investment banks as examples of prospective service providers. Service providers are people or businesses that offer services to businesses and other parties. They offer network, processing, and storage services.

To learn more about organization, click here.

brainly.com/question/12825206

#SPJ4

7 0
2 years ago
Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows.Actual : Dresses Sold:
ElenaW [278]

Answer:

(B) $5,000 favorable.

Explanation:

Variable cost flexible budget variance:

budget for 6,000 units total variable cost: $180,000

We divide the total cost by the activity in that budget:

$180,000/ 6,000 = 30

Now we multiply by the actual volume:

5,000 x 30 = 150,000

Now we do flexible budget - actual cost = variance

150,000 - 145,000 = 5,000 favorable

It is favorable, as the cost where less than expected.

4 0
3 years ago
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price
Cloud [144]

Answer:

Yield with 6-day maturity is 7.70%

Yield with 18-day maturity is 2.57%

Explanation:

The formula for yield on repurchase is given as:

y = ( PAR – P ) / P x (360 / t )

P=Purchase price

PAR=Repurchase price

t= number of days of the transaction

In first scenario,PAR is $39 million,P is $38.95 million and t=6

y=($39000000-38950000)/38950000*(360/6)

y=7.70%

In the second scenario,details remained the same except for t that is 18

y=($39000000-38950000)/38950000*(360/18)

y=2.57%

This implies the longer the maturity the lesser the yield since yield is computed on daily basis.

3 0
4 years ago
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