Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Answer:
Utilities
Explanation:
Variable costs are expenses that vary proportionately with the changes in production level. Should production level rise, variable costs increases. Variable costs form the majority of the direct cost of production.
Unlike fixed costs, the monthly bill for variable costs will keep fluctuating. In this scenario, utilities represent the variable cost. Expenses on electricity, water and other consumables will vary from time to time. With a high level of production, consumption of power and water will be high.
Rent and insurance cost will remain the same regardless of production level. A professional fee is an overhead expense. It is not an input in the production process.
<span>Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation
rising as real gross domestic product rises and unemployment falls, as
the economy moves along the Phillips curve. This is commonly described
as "too much money chasing too few goods".</span>
<span>If the changes need to be done immediately in order to benefit the health of the client, then IRB approval is not required. The IRB, which stands for Institutional Review Board, is a select group of people that review and regulate biomedical research in which human beings are involved. This group is regulated by the FDA.</span>
Answer:
1. 28.09 %
2.0.50 times
3.13.97 %
Explanation:
Margin = Profit / Sales × 100
= $ 5,000,000 / $ 17,800,000 × 100
= 28.09 % (2 decimal places.)
Turnover = Sales / Total Assets
= $ 17,800,000 / $ 35,800,000
= 0.50 times (2 decimal places.)
Return on investment = Divisional Profit Contribution / Assets employed in the division × 100
= $ 5,000,000 / $ 35,800,000 × 100
= 13.97 % (2 decimal places.)
