Answer:
Firm J's margin= 8.3%
Firm J's turnover= 2
Firm J's ROI= 16.6%
Explanation:
Form J has a net income of $77,605
The sales is $935,000
The average total assets is $467,500
Firm J's margin can be calculated as follows
Margin= Net income/sales
= $77,605/$935,000
= 0.083×100
= 8.3%
Firm J's turnover can be calculated as follows
Turnover= Sales/Average Total assets
= $935,000/$467,500
= 2
Firm J's return on investment can be calculated as follows
ROI= Net income/Average Total assets
= $77,605/$467,500
= 0.166×100
= 16.6%
Hence Firm J's margin, turnover and return on investment is 8.3%, 2 and 16.6% respectively.
Georgia booming industry in business sector particularly in Atlanta where it is housed as the International headquarters of facilities of 43 different countries. The industry that gave $23B per capita is the air transport industry. Atlanta dubbed as the busiest airport in the world.
Answer:
$2,058
Explanation:
the bonus when FIFO method is used = $50,490 x 20% = $10,098
the bonus when LIFO method is used = $40,200 x 20% = $8,040
the difference = $10,098 - $8,040 = $2,058
First in. first out (FIFO) method assigns cost of goods sold based on the price of the oldest units purchased, while last in, first out (LIFO) assigns cost of goods sold based on the price of the last units purchased. When the cost of merchandise increases during the year, FIFO method will result in lower COGS and higher net income.
First, you'll want to break down each item:
Sale price of a bear - $35
Fixed cost - $1,500
Variable cost of a bear - $24
If she sells 275 bears next month we will determine:
Margin of safety in units
Margin of safety in sales dollars
Margin of safety as a percentage of sales
Next, we will determine the dollar amount of sales and costs by multiplying the units sold by the price sold/cost of good
275 x $35 = $9,625
275 x $24 = $6,600
Fixed costs = $1,500
To find the margin of safety as a percentage of sales we will subtract the breakeven point from the current sales level and then divide by the current sales level
(Current sales level - breakeven point)/current sales level
$9,625 - $8,100 (fixed costs + cost of good)/ $9,625 =
15.84% is the margin of safety as a percentage
To find the margin of safety in unites we will subtract the breakeven point from the current sales level and then divide by the price per unit sold
$9,625 - $8,100 / 35 = 43.57 units is the margin of safety as a unit
To find the margin of safety in sales dollars we will subtract the breakeven sales from actual sales
$9,625 - $8,100 = $1,525 is the margin of safety in sales dollars
You can also find the margin on sales as a percentage after finding the margin of safety in sales dollars by taking the margin of safety in sales dollars and dividing it by the actual sales and then multiplying it by 100.
$1,525/$9,625 = 0.1584 x 100 = 15.84%