Answer:
$67,960
Explanation:
Residual income = Operating income - (Average invested assets * Cost of capital)
Residual income = $108,000 - ($500,500 * 8%)
Residual income = $108,000 - $40,040
Residual income = $67,960
Thus, the residual income is $67,960
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
<u>First, we need to calculate the total contribution margin:</u>
Total contribution margin= 92,000*0.63= 57,960
<u>Now, the net income:</u>
Net income= 57,960 - 30,000
Net income= $27,960
Answer:
Given the supply of land is perfectly inelastic, the drop in prices must have resulted from decreased demand for land. The demand for land would fall if there were less of a return on the land (i.e., rent), so we can safely assume that land rent fell in Japan between 1990 and 2001. The shifts from D3 to D2 to D1 demonstrate graphically what happened in Japan.
Explanation:
Answer:
$2,134
Explanation:
Calculation of the amount of the Net sales revenue
First step
Since we were been told that Weston sold the merchandise with a cost of $1,257 for $2,200 with the terms of 3/15 this means we are going to find the 3% of $2,200 calculated as:
3%*$2,200=$66
Second step is to deduct the $66 from the cost of $2,200,in order to find the Net Sales Revenue of Weston Jewelers
Net Sales Revenue =$2,200-$66
Net Sales Revenue=$2,134
Therefore the Net Sales Revenue of Weston Jewelers will be $2,134
Answer:
The company will produce the requested 150 units of A for a gain of 300 dollars
and then use his resourses to produce B yielding a gain of 90 dollars
total of 390 profit
Explanation:
The company will produce at least 150 units of product A therefore:
lbs used: 150 x 3 = 450
minutes of labor used 150 x 8 = 1,200
leaving available:
1,200 - 450 = 750 lbs
1,500 - 1,200 = 300 mins
As time is the most scarce resource we allocate base on thecontribution per minute:
product A $2 of profit for 8 minutes: 0.25 dollars per minute
product B $1.5 of profit for 5 minutes: 0.30 dollars per minute
As product B is more profitable considering labor time we use the entire amount left to produce product B
300 min / 5 minutes = 60 units of b
