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GREYUIT [131]
3 years ago
13

In its 2016 annual report, Caterpillar Inc. reported the following (in millions): 2016 2015 Sales $38,537 $47,011 Cost of goods

sold 28,309 33,546 As a percentage of sales, did Caterpillar's gross profit increase or decrease during 2016? Select one: A. Gross profit increased from 26.8% to 28.6% B. Gross profit decreased from 28.6% to 26.5% C. Gross profit increased from 71.4% to 73.2% D. Gross profit decreased from 73.2% to 71.4% E. There is not enough information to answer the question.
Business
1 answer:
Rom4ik [11]3 years ago
6 0

Answer:

B. Gross profit decreased from 28.6% to 26.5%

Explanation:

As for the provided information, we have

Particulars                    Year 2016             Year 2015

Sales                              $38,537                $47,011

Cost of goods sold        $28,309               $33,546

Gross Profit                   $10,228                 $13,465

Gross profit as a percentage of sales shall be:

Year 2016 = \frac{10,228}{38,537} \times 100 = 28.54

Year 2015 = \frac{13,465}{47,011} \times 100 = 28.64

As the percentage is higher of 2015 by 0.1%

The statement B which states that the gross profit has reduced is correct.

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8 0
3 years ago
Exhibit 9-1 Refer to Exhibit 9-1. If the economy is self-regulating, the price level is:_________.
victus00 [196]

Answer: b) lower in long-run equilibrium than in short-run equilibrium.

Explanation:

A self regulating economy will try to move to the long run Equilibrium.

From the graph attached you will notice that the Price Level at the point where the Long Run Curve intersects with the Aggregate Demand curve is lower than the point where the Short Run Supply curve intersects with the same Aggregate Supply.

This means that Prices in the long term at equilibrium will be less than prices in the short term at Equilibrium should the Economy be a self regulating type that will move towards a long term Equilibrium.

5 0
3 years ago
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of
myrzilka [38]

Answer:

Chevrolet Dealership

A) The total cost of the entire inventory is:

= $575,000

B) Each inventory would be reported at the LCNRV:

Inventory Items  Quantity  Reporting Cost/Value

Vans                        4              NRV

Trucks                     7              NRV

2-door sedans        3              Cost

4-door sedans        5              Cost

Sports cars              1              Cost

SUVs                       6              NRV

C) Journal Entry:

Debit Cost of goods sold $27,000

Credit Inventory $27,000

To write-down costs to net realizable values.

D) TRUE.

Explanation:

a) Data and Calculations:

Inventory Items  Quantity    Cost per unit      NRV per Unit      LCNRV

Vans                        4           27000 $108,000      25000        $100,000

Trucks                     7            18000   126,000       17000           119,000

2-door sedans        3           13000     39,000      15000            39,000

4-door sedans        5           17000     85,000     20000            85,000

Sports cars              1          37000      37,000     40000            37,000

SUVs                       6         30000    180,000     28000           168,000

Total Cost                                      $575,000                         $548,000

3 0
3 years ago
g A joint product is: Select one: a. Any product which consists of several parts. b. Any product produced by a company with more
mr_godi [17]

Answer:

The correct answer is letter "D": One of several products produced from a common input.

Explanation:

Joint products are those manufactured by large companies whose production process is the same at an early stage for all the different products being produced, but at a certain stage, called a split-off, the products begin to have their own characteristics.

Since the products initially come from the same input, the costs are allocated in the bundle. After the split-off, the cost of production is allocated to each type of product.

8 0
3 years ago
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Sedbober [7]

Answer:

The correct answer is letter "D": disparate-impact discrimination claim.

Explanation:

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3 0
3 years ago
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