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Gelneren [198K]
3 years ago
8

Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the

two divisions for the current year:___________.Retail Division Wholesale Division Operating income $ 7,500,000 $ 4,000,000 Operating assets $ 37,500,000 $ 17,500,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
6 0

Answer:

20.91%

Explanation:

Operating Income:

= Operating Income of Retail Division + Operating Income of Wholesale Division

= $7,500,000 + $4,000,000

= $11,500,000

Operating Assets:

= Operating Assets of Retail Division + Operating Assets of Wholesale Division

= $37,500,000 + $17,500,000

= $55,000,000

ROI = (Operating Income ÷ Operating Assets) × 100

= ($11,500,000 ÷ $55,000,000) × 100

= 20.91%

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he long-run average total cost of producing 100 units of output is $4, while the long-run average cost of producing 110 units of
Firlakuza [10]

Answer:

Constant Return to Scale

Explanation:

Based on the information given the numbers

suggest that between 100 and 110 units of output, the firm producing this output has CONSTANT RETURN TO SCALE.

Constant Return to Scale occurs in a situation where the proportional increase in all the inputs is as well equal to the proportional increase in output which means the returns to scale are constant , which is why RETURNS TO SCALE help to describe all what happens to long run returns when the scale of production increases.

Therefore Constant returns to scale often occur when the output increase in exactly the same way or the same proportion as the factors of production.

4 0
3 years ago
much to the chagrin of established firms, one clear supertrend is that products and services must get to market faster because
Anton [14]

Much to the chagrin of established firms, one clear super trend is that products and services must get to market faster because "more competitors are offering targeted products."

This is because it has been observed that several start-ups firms offer similar products to what the established firms are had as a business idea. Not only that, but they also target the same group of consumers.

Therefore, to remain top of the game and beat the startups out of business, the established firms must ensure their business ideas are quickly turned into products or services and get to the market faster.

Otherwise, the startups will take over their business ideas and a huge part of their targeted consumers.

Hence, in this case, it is concluded that the established firms must be proactive if they want to remain above the rest of their competitors.

Learn more here: brainly.com/question/17557971

5 0
2 years ago
Which of the following is a characteristic of economic services:
9966 [12]

Answer:

useful

Explanation:

i got it from USA test prep

4 0
2 years ago
PLZ help I’m so tired!! SIS GOTTA GO SLEEP!!
Rasek [7]

Answer:

my answer is a.let them talk

5 0
2 years ago
Todd can afford to pay $375 per month for the next 7 years in order to purchase a new car. The interest rate is 6.5 percent comp
Svetlanka [38]

Answer:

The most he can afford to pay = $25,260.07

Explanation:

The most he can afford to pay is the present value of the  $375 per month discounted at the interest rate of return of 6.5% p.a

PV = A× (1- (1+r)^(-n))/r

PV = ?, A- 375,  r- 6.5/12= 0.541%   n= 12×7 = 84

PV = 375× (1- (1.00541)^(-84) )/0.00541= 25260.071

The most he can afford to pay = $25,260.07

<em>Note: the monthly interest rate needed to be computed by dividing 6.5% by 12 and the number of months in 7 years is 7 × 12 = 84 </em>

4 0
3 years ago
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