The greatest justification for firm resources being committed to vertical integration (either forward or backward) is to add considerably to a company's technological capabilities, strengthen the company's competitive position, and/or increase its profitability.
A family of financial indicators known as profitability ratios is used to evaluate a company's potential to create profits over time in relation to its revenue, operational expenses, balance sheet assets, or shareholders' equity using information from a particular point in time. Efficiency ratios, which take into account how successfully a company uses its resources internally to generate income, can be contrasted to profitability ratios (as opposed to after-cost profits). Most profitability ratios show the company's performance by showing a higher value as compared to that of a competitor or to the same ratio from a prior period. The most insightful comparisons of profitability ratios are those made with comparable businesses, the company's own past, or industry averages.
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Answer:
0.4 or 40%
Explanation:
the formula used to calculate the reward variability ratio is:
reward variability ratio = (expected return - risk free rate) / standard deviation = (20% - 10%) / 25% = 10% / 25% = 0.4 = 40%
The reward variability ratio measures the return of a project, stock or investment, adjusted for its variability (standard deviation) compared to the risk free rate.
Answer:
true; all employees make either a positive or negative impact on a business
Explanation:
Answer:
Company shall rework on the cell phones.
Explanation:
In the given case we will do the comparison of the rework with the scrap.
In case of rework:
Total cost = $67 of manufacturing + $90 of rework = $157 each unit
Selling price then would be = $134 each
Loss on per unit = $157 - $134 = $23 on each cell phone.
In case no rework is done and the mobile phones are sold in scrap then the cost associated = $67 each
Value for sale = $33 each
Loss per unit on such sale = $67 - $33 = $34 each unit.
Since there is plenty of idle capacity the company in order to decrease the loss from selling these defective cell phones, the company shall rework on the phones, as loss in this case will be $34 - $23 = $11 per cell phone less than the loss in case of scrap sale.
Answer:
15.52 times
Explanation:
The formula to compute the times interest earned ratio is shown below:
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes would be
= Net income + income tax expense + interest expense
= $60,500 + $12,100 + $5,000
= $77,600
And, the interest expense is $5,000
Now put these values to the above formula
So, the ratio would equal to
= $77,600 ÷ $5,000
= 15.52 times
