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GREYUIT [131]
3 years ago
13

Paula Boothe, president of the Armange Corporation, has mandated a minimum 10% return on investment for any project undertaken b

y the company. Given the company’s decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 10%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 14% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,800,000 in a new line of energy drinks that is expected to generate $216,000 in operating income.Calculate the residual income for the proposed new line of energy drinks.
Business
1 answer:
Vlad1618 [11]3 years ago
4 0

Answer:

Residual income= $36,000

Explanation:

Residual income is the income that is generated in excess of the minimum required rate of return, which in this case is 10%. Any income above 10% return is considered as residual income. In this case the investment is 1,800,000 and 10% of that is 180,000 (0.1*1,800,000). So any income made above $180,000 will be residual income. In order to find the residual income we subtract the minimum income required from the actual income.

In this case the minimum income required is 180,000 and the actual operating income is 216,000 so residual income=

216,000-180,000= $36,000

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d

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tino4ka555 [31]

Answer:

As per Chegg guidelines .

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For a high-context culture, the social environment or social context has more importance than the words being spoken. This means that in a high context culture, low-contex culture is not as important as the nonverbal communication, because nonverbal communication has more importance . For the high-context culture, a contract is just a beginning point for negotiations in closing the deal. Signing of the contract does not necessary means closing of the business deal. Some of the examples of high-context cultures are China, most Arab countries, Latin America, most African countries, most other Asian countries, and Italy. In reality, most cultures fall somewhere along a continuum, or sliding scale, in their perception of the importance of context (with high and low being the end points of the continuum

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3 years ago
Résumés should include the following:
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true

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8 0
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djverab [1.8K]

Answer:

According to the flexible budget, income from operations will increase from $557,000 to $915,000 if the units sold increase from 15,000 to 18,000 during 2017.

Explanation:

sales revenue should increase to                         $4,050,000

cost of goods sold should increase to:                ($2,237,000)

  • direct materials $1,260,000
  • direct labor $180,000
  • machinery repairs $54,000
  • depreciation (fixed) $315,000
  • utilities $228,000
  • management salaries $200,000

gross profit                                                              $1,813,000

S&A expenses increase to:                                   ($898,000)

  • packaging $72,000
  • shipping $108,000
  • sales salaries (fixed) $260,000
  • advertising expense (fixed) $127,000
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income from operations                                          $915,000

4 0
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