1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mariulka [41]
3 years ago
14

Rica Company is a price−taker and uses a target−pricing approach. Refer to the following​ information:Production volume602,000un

its per yearMarket price$34per unitDesired operating income17​%of total assetsTotal assets$13,700,000What is the desired profit for the​ year?
Business
1 answer:
loris [4]3 years ago
4 0

Answer:

Desired profit for the year = $2,329,000

Explanation:

Using the given information, we have

Production volume = 602,000 units

Market price = $34

Operating income desired = 17% of total assets

Total Assets = $13,700,000

Operating income = $13,700,000 \times 17% = $2,329,000

Therefore desired profit = $2,329,000

therefore with this information desired profit per unit = $2,329,000/602,000 =  $3.869

Target cost per unit = $34 - $3.869 = $30.131

Desired profit for the year = $2,329,000

You might be interested in
The ratio that measures how much an investor is willing to pay for a dollar of earnings is known as a _____________ ratio.
zzz [600]

Answer:

A)Market value

Explanation:

The market value ratios can be regarded as the financial metrics that are engaged in evaluation of worth of stocks of the companies that trade publicly. The ratio helps the investors to know if the price of prevailing market share is in sync along with the performance of the company. It should be noted that The ratio that measures how much an investor is willing to pay for a dollar of earnings is known as a market value ratio.

4 0
2 years ago
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would co
ASHA 777 [7]

Answer:

     a. 5 years

     b. Yes they will because the payback period is 5 years.

Explanation:

a. Payback period

First calculate the annual cash inflow:

= Net income + Depreciation

= 66,500 + 28,500

= $95,000

The investment cost was $475,000

Payback period = Investment cost / Annual cash inflow

= 475,000 / 95,000

= 5 years

b. The company will purchase the games because they have a payback period of 5 years.

5 0
3 years ago
Q 7.1: a _____ would be properly classified as cash.
kotegsom [21]
A savings account would be properly classified as cash which is an interest bearing bond account held at a bank or alternative monetary organization that offers an uncertain interest rate. The banks or monetary organizations may have assured the number of withdrawals can create from savings account each month and burden fees if uphold a certain average monthly balance in the account. 
8 0
3 years ago
Prepaid expenses require what type of adjusting entry? Question options: Matched Accumulated Accrued Deferral
yanalaym [24]

Answer:

deferral

Explanation:

Adjusting entries are when changes are made to already recorded journal entries.

Categories of adjusting entries :

  1. accrued revenues
  2. accrued expenses
  3. unearned revenues
  4. prepaid expenses
  5. depreciation.

Prepaid expenses are payments made for services yet to be delivered.

For example, paying for a year's worth of subscription on your streaming service

Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral

7 0
3 years ago
Science explanation avout mesurement
maw [93]

Answer:

what is the importance of trade international trade?

International trade is of great importance at international level as it binds or bonds countries together and enhance trade by barter as well as helps to generate more money. International trade also helps in improving economy as it increases internal generated revenue from imported goods and services

Explanation:

4 0
3 years ago
Other questions:
  • _____ is a type of data encryption that enables users of the Internet to securely and privately exchange data through the use of
    12·1 answer
  • What does it mean for a credit to transfer
    14·2 answers
  • Geneva Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months ea
    8·1 answer
  • Suppose that the state of Massachusetts enacts a law that forbids Mexico and businesses located in that country from doing busin
    13·1 answer
  • What two elements normally must exist before a person can be held liable for a crime
    10·2 answers
  • Define debt economics.​
    9·1 answer
  • A salesperson preparing a written offer from a prospect may do so by filling in the blanks on a pre-approved broker's contract f
    7·1 answer
  • On December 31, 2020, Orange Company issued 30,000 shares of its common stock with a fair value of $50 per share for all of the
    10·1 answer
  • How To Get To London Southend Airport Taxi?
    13·1 answer
  • What does the Internet hostname after the period in the URL describe?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!