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dangina [55]
3 years ago
15

The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service de

partment charges): Sales $82,500,000 Cost of goods sold 53,625,000 Gross profit $ 28,875,000 Administrative expenses 15,675,000 Income from operations $ 13,200,000 The manager of the Consumer Products Division is considering ways to increase the return on investment.Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $55,000,000 of assets have been invested in the Consumer Products Division. If required, round the investment turnover to one decimal place.
Business
1 answer:
hichkok12 [17]3 years ago
4 0

Explanation:

The computation is shown below:

For return on investment

Return on investment = Income from operations ÷ invested assets

= $13,200,000 ÷ $55,000,000

= 0.24 or 24%

For Investment turnover

Investment turnover = Sales ÷ Invested assets

= $82,500,000 ÷ $55,000,000

= 1.5

For Profit margin

Profit Margin =  Income from operations ÷ Sales

= $13,200,000 ÷ $82,500,000

= 0.16 or 16%

The return on investment

= Profit margin × investment turnover

= 16% × 1.5

= 24%

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Answer:

2) intangibility

Explanation:

A service can be defined as a collection of intangible goods that are being offered by a service provider to the end user in order to meet their needs or requirements. Thus, it is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed by the service takers.

This scenario best illustrates the intangibility of services.

7 0
3 years ago
Maddox Auto Parts, Inc., contracted with Billy's Mufflers Co. to purchase 35 mufflers from their warehouse supplies. All the muf
juin [17]

Answer: A. at the time of contracting.

Explanation:

Insurable interest is the reasonable concern to obtain insurance against unforeseen events such like losses or death. Insurable interest is when the loss of an object or damage would result in a financial loss.

Based on the information given, Maddox Auto Parts gained an insurable interest in the mufflers at the time of contracting. An individual will gain an insurable interest immediately s contract takes place.

Therefore, the correct option is A.

5 0
2 years ago
7.
lina2011 [118]

Answer:

I think it would be either B or C

I can't tell between those too I'm sorry

4 0
3 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0
2 years ago
Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely
Elenna [48]

Answer:

The options for this question are the following:

A. Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.; B. Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.; C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result; D. Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.

The correct answer is C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.

Explanation:

There is a strong correlation between pricing (at prices higher than the equilibrium price) and the creation of excess supply. Following the analysis of supply and demand, if we start from an initial equilibrium situation (where the quantity demanded and supplied are equal) and the authority decides to set a much higher price, the quantity demanded of the product will decrease and, on the other hand, the quantity supplied will increase, so producers will want to sell more than consumers want to buy. The previous problem will be solved if the authority decides to lower the price of the product, since this encourages consumers to buy more and bidders to produce less.

8 0
3 years ago
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