Answer:
2) strategic positioning
Explanation:
Based on the scenario being described within the question it can be said that they have most likely been able to provide this through strategic positioning. This term refers to the way in which a company sets itself apart from the competition in a market and provides value to their customers. Allowing them to make specific decisions based on their position. Such as FindFor is able to provide all of their online services.
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Step to step answers
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Answer:
MW Company
Activity rate for order process = $54,120/660
= $82 per order
Explanation:
a) Data and Calculations:
Production = 16,500 units
Direct labor = 19,800 hours
Machine hours = 21,450 hours
No. of orders = 660
No. of shipments = 165
Order-processing cost pool = $54,120
Shipping cost pool = $14,025
Assembly cost pool = $71,280
Activity rate for order process = $54,120/660
= $82 per order
b) MW Company uses an activity-based costing system to identify its activities into cost pools and assign the cost of each activity pool to the products and services according to their actual consumption of the activities. The activity-based costing technique provides a more accurate method for determining the costs of products and services. As a more accurate method for pricing decisions than other traditional methods, activity-based costing technique increases management's understanding of overheads and cost drivers and makes activities that are costly and non-value adding to become more visible, allowing managers to reduce or eliminate them, because these activities add costs to the production system.
Answer:
A. 34.2%
B. 4.5%
C. 8.1%
D.10.64%
Explanation:
a) Calculation to determine Gross margin percentage
Using this formula
Gross margin percentage = Gross profit/Net Sales
Let plug in the formula
Gross margin percentage= 27000/79000
Gross margin percentage = 34.2%
b) Calculation to determine Net profit margin
Using this formula
Net profit margin = Net income/Net Sales
Let plug in the formula
Net profit margin = 3540/79000
Net profit margin = 4.5%
c) Calculation to determine Return on assets
Using this formula
Return on assets = (Net income+Interest expense)/Average total assets
Let plug in the formula
Return on assets = (3540+360)/48120
Return on assets= 8.1%
d) Calculation to determine Return on equity
Using this formula
Return on equity
= Net income/Average equity
Let plug in the formula
Return on equity = 3540/33270
Return on equity =10.64%
