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solmaris [256]
3 years ago
12

Last year, Candle Corp had $200,000 of assets, $300,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 40%

. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $30,000. Assets, sales, and the debt ratio would not be affected. By how much would the cost reduction improve the ROE?
Business
1 answer:
Arisa [49]3 years ago
5 0

Answer: 342,000

Explanation:

200,000 + 300,000 + 20,000 = 520,000

520,000 * 40% = 208,000

520,000 - 208,000 = 312,000

312,000 + 30,000 = 342,000

Therefor your answer is 342,000

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arlik [135]

Answer:

Total direct manufacturing cost= $55,890

Explanation:

Giving the following information:

5,600 units:

Average Cost per Unit Direct materials $ 6.55

Direct labor $ 3.80

The manufacturing overhead is an<u> indirect cost.</u> It is allocated based on a predetermined rate. <u>We will take into account only the direct materials and direct labor.</u>

<u>For 5,400 units:</u>

Total direct manufacturing cost= 5,400*(6.55 + 3.8)

Total direct manufacturing cost= $55,890

6 0
3 years ago
Privately owned media companies in the united states earn most of their revenue from:.
IrinaVladis [17]

Answer:

advertising

Explanation: Mark me brainliest!!

8 0
2 years ago
To maximize profit, a perfectly competitive firm:_____.
dmitriy555 [2]

Answer:

D

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Profit is maximised where marginal cost equals marginal revenue.

3 0
3 years ago
You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payment
madam [21]
Hello! The answer would be D. $3,741. I hope this helps!
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