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Andre45 [30]
3 years ago
9

Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit t

o sales)? 55% 65% 73.3% 35%\
Business
1 answer:
Strike441 [17]3 years ago
6 0

Answer:

The gross profit margin of Candy Company is 65% (second option)

Explanation:

The gross profit margin is defined as:

Mg = (sales - costs) / price of sales  

If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:

Mg = ($320,000- $112,000) * 100% / $320,000  =  

Mg = $208,000 * 100% / $320,000  =  0.65 * 100%

Mg  =  0.65 * 100%  

Mg  =  65%  

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The bank is considering paying interest to customers carrying daily checking account balances in excess of a certain amount. If
olya-2409 [2.1K]

Answer:

If the amount is 1 for example,

And the bank does not want to pay more than 4%, then the amount will be,

4/100 ×1= 0.04

5 0
3 years ago
A delivery truck costing $25,000 is expected to have a $1,500 salvage value at the end of its useful life of four years or 125,0
Helga [31]

Answer:

a.

Depreciation expense year 2 Straight line = $5875

b.

Depreciation expense year 2 Double declining = $6250

c.

Depreciation expense year 2 units of activity = $5264

Explanation:

a.

Straight line method is a depreciation method that charges a constant depreciation expense through out the useful life of the asset. Straight line depreciation per year is,

Straight line depreciation = (Cost - Salvage value) / Estimated useful life

Straight line depreciation = (25000 - 1500) / 4    =  $5875 per year

Straight line rate = 100% / 4 = 25%

b.

Double declining balance is an accelerated method of depreciation that charges more depreciation in the initial years and less in later years. Double declining balance depreciation is calculated as follows,

Depreciation expense = 2 * Straight line rate * Book value at start of the period

Depreciation expense year 1 = 2 * 0.25 * 25000     = $12500

Book value at start of year 2 = 25000 - 12500 = $12500

Depreciation year 2 = 2 * 0.25 * 12500  =  $6250

c.

The units of production method charges depreciation based on the activity for which asset is used as a proportion of the estimated useful life in terms of activity.

Depreciation expense year 2 = (28000 / 125000) * (25000 - 1500)

Depreciation expense year 2 = $5264

7 0
3 years ago
Hot Shot Delivery Inc. provides the following year end data:
saw5 [17]

Answer:

27.3%

Explanation:

rate of retun on assets:

\frac{Income}{Assets} = $Assets rate of return

​where:

Net income:              112,000

2018 Assets:           410,000

\frac{112,000}{410,000} = $Assets rate of return

$Assets rate of return 0.2731707317073171‬ = 27.32%

During 2018 each dollar of assets generate 27.32 cents of income.

3 0
2 years ago
Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot. a. The
AlexFokin [52]

Answer:

d. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.

Explanation:

Opportunity cost is a microeconomic concept used to describe how much an economic agent fails to earn in one economic activity by employing money in another economic activity. Thus, all expenses that a student performs to study at the university, including tuition, gasoline, parking, material, and time spent on the activity, is considered an opportunity cost, since all of this could be spent on another activity.

5 0
3 years ago
The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respecti
NikAS [45]

Answer:

37.5%

Explanation:

In this question, we are asked to calculate the Value of the cash return on asset

We use a mathematical representation to do this. Let’s get the formula.

Mathematically:

Cash return on assets = operating cash flows/average total assets

According to the question, the operating cash flow has a value of $150,000. The average total assists have a value of (350,000+450,000)/2 = 800,000/2 = $400,000

We input these values into the formula:

Cash return on assets = 150,000/400,000 = 37.5%

5 0
3 years ago
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