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3 years ago

What is profit?

Business

1 answer:

lions [1.4K]3 years ago

3 0

Answer:

C. Money remaining when all other business expenses, including

salaries, rent, and taxes, have been paid.

Explanation:

Profit can also be said to be the difference between the amount earned and the amount spent in buying, operating, or producing something.

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Bottlebrush Company has income from operations of $73,745, invested assets of $245,000, and sales of $1,053,500. Use the DuPont

zaharov [31]

Answer:

a. Profit margin = Income from operations / Sales

Profit margin = $73,745/$1,053,500

Profit margin = 0.07

Profit margin = 7%

b. Investment turnover = Sales/Invested assets

Investment turnover = $1,053,500/$245,000

Investment turnover = 4.3 times

c. Rate of return on investment = Profit margin * Investment turnover

Rate of return on investment = 7% * 4.3

Rate of return on investment = 30.10%

3 0

3 years ago

Ray kroc first became involved with mcdonalds as a salesman selling what item to the restaurant chain?

denis-greek [22]

Ray kroc first became involved with mcdonalds as a salesman selling : Milkshake - mixer
He became fascinated by the possibilities that Mcdonalds could offer and became the first one who propose to make McDonalds became a franchise

hope this helps

7 0

3 years ago

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manuf

Natasha2012 [34]

Answer:

Kiddy Toy Corporation

The company should lease. It will save $30,123 by leasing than by buying the machine.

Explanation:

a) Data and Calculations:

1. Buy Machine:

Initial cost = $170,000

Annual Insurance Premium = $15,000

Interest rate = 12%

Estimated useful (Lease Period) = 15 years

Insurance Premium for 15 years (PV) = $102,162.97

PV of Salvage value ($20,000 * 0.183) = $3,660

Total cost of buying machine = $268,503 ($170,000 + $102,162.97 - $3,660)

Present value of lease payments = $238,380

NPV of leasing over buying = $30,123 ($268,503 - $238,380)

N (# of periods) 15

I/Y (Interest per year) 12

PMT (Periodic Payment) 35000

FV (Future Value) 0

Results

PV = $238,380.26

Sum of all periodic payments = $525,000.00

Total Interest = $286,619.74

Insurance Premium:

N (# of periods) 15

I/Y (Interest per year) 12

PMT (Periodic Payment) 15000

FV (Future Value) 0

Results

PV = $102,162.97

Sum of all periodic payments $225,000.00

Total Interest $-122,837.03

5 0

3 years ago

If both the average flow rate and average flow time of a process are increased by 50%, the percentage change in the average numb

MrRissso [65]

Answer:

The percentage change in the average number of units in the process is 125%.

Explanation:

Based on Little's law;

Average inventory = average flow rate * average flow time

Let inventory = I, average flow rate = R and average flow time = T

Thus, I = R*T = RT

Now, Average flow rate and average flow time are increased by 50%

R' = R + 0.5R = 1.5R

T = T + 0.5T = 1.5T

So, inventory, I' = 1.5R*1.5T=2.25RT

Hence, the percentage change in the average number of inventory units in the process.

% change = I' - I = 2.25RT - RT= 1.25RT or 125%

Thus correct answer = 125%

7 0

4 years ago

A company is considering a project with a cash break-even point of 22,600 units. The selling price is $28 a unit, the variable c

Ludmilka [50]

Answer:

fixed Cost 39,000

Explanation:

The break even point is the level of sales at which net income equal to zero.

This means the company operates and pays their fixed and variable cost

The formula for break even point in units is:

$BEP_{units} = \frac{Fixed \: cost}{Contribution \: per \: units}$

Where:

Contribution per unit = Selling price - variable cost

15 per unit = 28 - 13

We are given the BEP and we need to solve for Fixed cost

$22,600 = \frac{Fixed \: cost}{15}$

Fixed Cost = 22,600 x 15 = 39,000

The depreciation expense is irrelevant for the case, we can solve for the total fixed cost directly by using the BEP

4 0

4 years ago