Answer:
Let us assume that both the industries are having an investment of $100,000
The profit of the given industry which is having 10% rate of return will be $100,000 * 10% = $10,000
The other industry which is having the Rate of return of 5% will earn a profit of $100,000 * 5% = $5000.
As the capital is just half of the revenue, it signifies that the total revenue will be $200,000
. So the same value of $10,000 will be 5% of the total revenue. On the other hand, $5,000 would be 2.5% of total revenue.
Thus, the first stated industry will charge 2.5% more than the other industry.
The two pieces of information that are arguably the most important to any business are the following: Demand -- It is important to know what is currently on high-demand in the place your business is located for you to know what products or services should be made available. Culture - Can your business grow with the existing cultures of the place you are selling? Consider the place and culture for you to identify what products should be sold.
Answer:
Net operating income= 4,134
Explanation:
Giving the following information:
Hailey, Inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. Assume the tax rate is 35 percent.
Sales= 19,570
COGS= 9,460
Gross profit= 10,110
Depreciation expense= 2,130
Interest expense= 1,620
EBT= 6,360
Tax= 2,226
Net operating income= 4,134
