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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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Cassandra's Boutique has 2,100 shares outstanding at a market price per share of $26. Sally's has 3,000 shares outstanding at a
Schach [20]

Answer:

E. $60,500

Explanation:

The value of Cassandra's Boutique to Sally's = Cash paid for the acquisition + Incremental cost = $58,000 + $2,500 =  $60,500

Therefore, the value of Cassandra's Boutique to Sally's is $60,500.

7 0
3 years ago
When Glenn is thirsty, he always buys a Coke. Like many consumers, Glenn engages in considerable alternative evaluation when buy
Alecsey [184]

Answer:

False

Explanation:

Buying coke by Glenn is an habit because he does not have to think before doing it. He does not even try to consider alternatives which could be as a result of his total satisfaction from coke. Habitual decisions need little to no conscious effort (reasoning) to make.

Cheers.

3 0
3 years ago
A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult pop
Serggg [28]

The unemployment rate is calculated as the number of eligible persons that are unemployed.

So we would need to remove all the population that is out of the workforce (those who are not eligible to work like the elderly or children).

We know that the total population is 8,000,000 and we can account for 5,500,000 of them so the eligible population of workers is 5,500,000.

If 500,000 of them are unemployed, the rate would be 500,000/5,500,00 or 9%

To find the share of the labor force, take the total eligible (5,500,000) divided by the total population (8,000,000)

5,500,000/8,000,000 = 68.8% of the total population is in the labor force.

5 0
3 years ago
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surpl
marysya [2.9K]

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

4 0
3 years ago
In response to the new employee end of shift policy Brianna proposes that Ollie pay its employees on their breaks instead of mak
scoundrel [369]

Answer:

Exchange influence tactic

It means to express one's promise or trading favours

Explanation:

Influence tactics are the strategies a leader or an organization adopts so as to get people committed to them, such strategy could be positive and negative, hard or soft.

Examples of influence tactics includes rational persuasions, exchange, personal appeals, pressure, consultation, Ingratiation, etc.

5 0
3 years ago
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