Answer:
26.923%
Explanation:
Return on Investment
Center B
return 525,000
investment 1,950,000
ROI 525,000 / 1,950,000 = 0,26923076923 = 26.923%
Is metric is used to determinatethe efficiency of the assets. It compares the generated amount with the investment account.
The investment yields 26.923% of the principal
Answer:
Realistic
Explanation:
The acronym "SMART" stands for Specific. Measurable, Achievable, Realistic and Timely. These are criteria that goal setting should adhere to, to ensure that the goal is achieved.
The criteria Realistic in "SMART" emphasizes that a goal that is been set should be realistic and achievable given the available resources and time.
The goal " I will triple sales in my territory by the end of the next fiscal year." is lacking the criteria of been realistic because it doesn't seem achievable within a fiscal year.
Answer:
$75 per case
Explanation:
Required: Selling Price per case
Sales – Variable cost – Fixed cost = Target desired profit
Sales = 800000 case x Selling Price (SP)
Variable cost = (800000 case x $40) + (800000 x SP x 25%)
Putting into equation:
Sales – Variable cost – Fixed cost = Target desired profit
(800000 x SP) – [(800000 x 40) + (800000 x SP x 25%)] - $8000000 = $ 5000000
>800000SP – (32000000 + 200000SP) – 8000000 = 5000000
>800000SP – 32000000 – 200000SP – 8000000 = 5000000
>800000SP – 200000SP = 5000000 + 8000000 + 32000000
>600000SP = 45000000
>SP = 45000000 / 600000
>SP = $ 75
Answer and Explanation:
a. The computation of operating profit is shown below:-
Profit per unit = Purchase price from outside per unit + variable cost of production internally
= $15 - $7
= $8
Total increment in operating profit = Profit per unit × Total number of units
= $8 × 24,000
= $192,000
b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)
c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit
