Answer:
The rate of return on total assets for 2017 is 62.03%
Explanation:
The return on total shows assets shows a relationship between the net income including interest expenses and the average total assets.
The computation of the rate of return on the total assets is shown below:
Rate of return on the total assets = {(Net income + Interest expense) ÷ average total assets)} × 100
= ($185,000 + $20,000) ÷ {($404,000 + $257000) ÷ 2} × 100
= ($205,000 ÷ $330,500) × 100
= 62.03%
The correct concerning the payback rule is rule is flawed because it ignores all cash flows after some arbitrary point in time.
Payback period in capital budgeting refers to the time required to recover funds spent on an investment or to reach breakeven. Example: If at the beginning of year 1 he invests $1,000 and at the end of year 1 and his second year he earns $500, it pays for itself within 2 years.
The number of years it will take to recover the money invested. For example, if it takes 5 years to recover the cost of an investment, the payback period is he 5 years.
Payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.
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Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $6,240
Credit card expense A/c Dr $260 ($6,500 × 4%)
To Sales A/c $6,500
(Being the deposit is recorded)
For recording the deposit, we debited the cash account, credit card expense and credited the sales account so that the proper posting can be done.
Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.
<h3>What is the cost of producing the switches?</h3>
This can be found as:
= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent
= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)
= $205,900
If they bought the switches at $36, they would cost:
= 36 x 5,000
= $180,000
Its cheaper to buy by:
= 205,900 - 180,000
= $25,900
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Answer:
An ONLINE TO OFFLINE STRATEGY
Explanation:
An online to offline strategy is a business strategy that is mostly utilized by some organizations to bring customers from the internet and many online platforms to come down to their physical shops and stores and make their purchases. It simply involves the ability to identify potential customers over the internet and other online platforms and then make judicious use of a lot of avenues, ways, and approaches through discounts and the likes to tempt or attract these identified potential buyers to now come over and buy from their stores and physical locations.
Now, Kellie who wants to find and buy the best brand at the right price can only be located and engaged through out her customer journey by an accessory store from the time she begins her research (online) to the time she would now make the actual purchase (offline) only if the store makes use of the ONLINE TO OFFLINE STRATEGY.
