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aivan3 [116]
3 years ago
11

For the past year, Allargando Company recorded sales of $500,000 and average operating assets of $250,000. What is the margin th

at Allargando Company needed to earn in order to achieve an ROI of 12%? Multiple Choice 6.00% 12.00% 2.00% 8.33%
Business
1 answer:
miskamm [114]3 years ago
3 0

Answer:

6.00%

Explanation:

The company's desired return amount is given by the ROI multiplied by the amount invested, in this case, the average operating assets:

R=0.12*\$250,000\\R=\$30,000

The margin required in order to achieve a return of $30,000 is given by:

M= \frac{R}{sales} =\frac{\$30,000}{\$500,000} \\M= 0.06 = 6.00\%

Allargando Company's margin must be 6% in order to achieve a ROI of 12%.

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Answer:

a. less than; more than 

Explanation:

An oligopoly is when there are few large firms operating in an industry.

A competitive industry is when there are many buyers and sellers of homogenous goods and services.

A Monopoly is when there is only one firm operating in an industry.

An oligopoly firm can choose to cooperate with other firms in the industry or not cooperate.

If firms do not cooperate they produce more goods than if they cooperated. The quantity produced can never be as much as that of a competitive firm because the number of producers in an oligopoly is less than that in a competitive firm.

The output would be more than the quantity produced by a monopoly because the number of producers in an oligopoly is more than that in a monopoly.

I hope my answer helps you.

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