Ask question

Ask question

All categories

2 years ago

7

Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000 and Avocado C

ompany has an 8% cost of capital. What is the profit margin?
A. 8%
B. 10%
C. 16%
D. 20%

1 answer:

WARRIOR [948]2 years ago

8 0

Answer:

A. 8%

Explanation:

Profit margin = (Operating income / Revenue)

Profit margin = ($80,000 / $1,000,000)

Profit margin = 0.08

Profit margin = 8%

You might be interested in

A clause which provides for deeds to portions of land to be conveyed as certain percentages of the contract price are paid, is :

Sedaia [141]

Answer: partial release clause

Explanation:

The partial release clause is regarded as a clause which provides for deeds to portions of land to be conveyed as certain percentages of the contract price are paid.

The partial release clause simply states that when the balance on a mortgage has been paid to a particular amount, the lenders will have to release a parcel.

4 0

3 years ago

Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as

IrinaVladis [17]

Answer:

c. $500,000

Explanation:

Given that :

Parker Corp. owns 80% of Smith Inc.'s common stock

During Year 1, Parker sold Smith $250,000 of inventory

Therefore; adjusted for inter Corp. sales = $250,000

The following information pertains to Smith and Parker's sales for Year 1:

Parker Smith

Sales $ 1,000,000 $ 700,000

Cost of Sales $400,000 $ 350,000

Total $ 600,000 $ 350,000

For the Unadjusted Cost of Sales of Parker and Smith = $400,000+$ 350,000

= $750,000

The amount that Parker should report as cost of sales in its Year 1 consolidated income statement = Unadjusted Cost of Sales - adjusted for inter Corp. sales

= $750,000 - $250,000

= $500,000

7 0

3 years ago

At Park Incorporated, employees are allowed one-hour lunches, but it has become common that most stroll back fifteen minutes lat

Rudik [331]

Answer:

Social Factor - Cultural Norm

Explanation:

The behavior is common in all Park's employees so there isn't any individual factor which is affecting their behavior. Further, Social Factor (Cultural Norms) can be accounted for this impact.

Cultural norm: This habit has been developed as the cultural norm (particular behaviors which are accepted in society). Everyone is following it continuously and without guilt or intention of not repeating it.

3 0

3 years ago

Suppose the production function is given by Q = 4K + 6L. What is the average product of capital when 10 units of capital and 5 u

Lana71 [14]

Answer:

The average of the product of capital is 7

Explanation:

The average of the product of capital is computed by using this equation or formula :

AP = aK + bL / K

where

AP is Average Product

k is Capital, which is 10 units

L is Labor, which is 5 units

ak where a is the component which is 4

bL where b is the component which is 6

So, putting the values above in the formula:

AP = 4(10) + 6(5) / 10

AP = 40 + 30 / 10

AP = 70 / 10

AP = 7

Therefore, the average product is 7

3 0

2 years ago

Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: A small grocery store

Ad libitum [116K]

Answer:

d. ROP

Explanation

The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. The cost of excess stock for the grocery store is $1 ($1.50 - $0.50). The cost of under cutting the inventory is $1.70 ($3.20 - $1.50). The cost of under stocking is more than cost of excess inventory. The best model which will suit the grocery store is ROP.

8 0

3 years ago