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AnnyKZ [126]
3 years ago
15

Using the Du Pont method evaluate the effects of the following relationships for the company.

Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

Explanation:

A. Profit margin*Total asset turnover=Return on assets(investment)

0.07*TAT=25.2

TAT=360

B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%

C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%

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Answer:

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Direct Cost for finished goods is referred to the costs of the items and services directly used in production that can be allocated to a single cost object. Other costs including rent and production site insurance are indirect costs. The cost of the finished goods may be assigned to indirect costs, but they are not direct costs because they do not change with production levels.

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One of the first technologies to truly revolutionize the business use of information was a stone tablet.
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