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777dan777 [17]
3 years ago
9

The Atlantic Division of Start Production Company reported the following results for 2020: Sales $5,500,000 Variable Costs $2,20

0,000 Controllable Fixed Costs $2,540,000 Average Operating Assets $4,000,000 The minimum required rate of return of Start Production Company is 16%.
A. What is the controllable margin of the Atlantic Division for 2020?
B. What is the Return on Investment (ROI) for the Atlantic Division for 2020?
C. What is the Residual Income for the Atlantic Division for 2020?
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

a. Controllable margin = Sales - Variable costs - Controllable fixed cost

=5,500,000 - 2,200,000 - 2,540,000

= $760000  

b. Return on Investment (ROI) =   Controllable margin / Average Operating Assets * 100

=  760,000 / 4,000,000 * 100

=0.19 * 100

=19%

c. Residual income = Controllable margin - Minimum required return  (4000000 * 16% = 640000)

=760,000 - 640,000

=$120,000

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The market supply curve represents the sum of the quantities supplied by all the sellers at each price of the good.

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The market supply curve is the sum of the individual supply curves of firms. The individual supply curves are added horizontally. The supply curve sloped upward. This shows that there is a positive relationship between price and quantity supplied.

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8 0
1 year ago
Analyse TWO benefits of being employed in an education sector (2×2=4)
chubhunter [2.5K]

Answer:

Benefits of being employed in the education sector include:

1)Being Exposed to Multiple Perspectives:  Jobs in education tend to expose employees to a wide variety of perspectives and many different opinions.

2) Stable Schedule: Employees in the education sector can rely on a reliable work schedule with stable hours and little overtime. In the education sector, you do not have to work over time. The timings are exact and flexible along with the weekends off.

7 0
3 years ago
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of
faltersainse [42]

Answer:

2021

revenue                 2,666,667

we have cost for <u>  2,000,000  </u>

income for                666,667

2022

revenue                     3.278.400‬

cost                       <u>     2,500,000    </u>

income                          778.400‬

2023

revenue          2,054,933‬

cost             <u>    3,800,000   </u>

loss                   1,745,067‬

Explanation:

2,000,000/ (2,000,000 + 4,000,000) = 1/3

in 2021 a third of the contract was complete therefore we recognize a third of revenue:

8,000,000 x 1/3 = 2,666,667

we have cost for   2,000,000

income for                666,667

2,500,000 / (2,500,000 + 3,600,000) = 0,4098

we recognize revenues for 40.98 of the total contract value.

8,000,000 x 40.98 = 3.278.400‬

cost                       <u>     2,500,000    </u>

income                          778.400‬

2023

we recognize the remaining revenue.

8,000,000 - 2,666,667 - 3,278,400 = 2.054.933‬ revenue

cost 3,800,000

loss   1,745,067‬

7 0
2 years ago
(a) On March 2, Blossom Company sold $853,600 of merchandise to Kingbird Company on account, terms 3/10, n/30. The cost of the m
tester [92]

Answer:

The answers are:

A) to record sales

Dr Accounts Receivable 853,600

Cr Sales Revenue 853,600

to record inventory

Dr Cost of Goods Sold 540,300

Cr Merchandise Inventory 540,300

B) to record sales returns

Dr Sales Returns & Allowances 114,200

Cr Accounts Receivable 114,200

to record inventory

Dr Merchandise Inventory 68,200

Cr Cost of Goods Sold 68,200

C) to record payment

Cr Cash 717,218

Cr Sales Discounts 22,182

Dr Accounts Receivable 739,400

8 0
3 years ago
If the consumer price index was 170 in one year and 180 in the next year, then the rate of inflation is approximately:
aliina [53]
Well the answer is quite easy just count From 170 to 180 and that leaves u with 10 so ur answer is ten
8 0
3 years ago
Read 2 more answers
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