Answer:
Return on investment = 27.35 %
Explanation:
Below is the given information.
Residual Income = $23000
Operating income = 49,998
Cost of Capital = 12%
Now calculate the invested amount. Here, below is the calculation of the investment amount.
Invetment amount = (Operating income- Residual income) / Cost of capital
= (49998 - 23000) / 12%
= $ 224983
Now calculate the return on investment by using below formula.
The Return on investment = (operating income ÷ investment)×100
=(49998 / 224983) × 100
= 22.22 %
Return on investment = 27.35 %
Answer:
To: President
From: General Manager Finance
Subject : Pricing strategy for existing products
Date : 20th June 2021
As you are aware about the declining sales of our various products. The main reason identified by our sales and marketing analysts for the declining sales is over pricing of various products. There have been increase competition in the market and new entrants have adopted strategy of economies of scale which enable them to sell the product at low price and gain market share. There we need to cut our costs and then reduce our profit margin to boost sales of our products. We can be profitable from volume sales strategy.
If you need to discuss further on this matter, we can arrange a meeting with head of different department to discuss the business strategy in more detail.
Answer:
where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see.
Explanation:
Answer:
the net realizable value of accounts receivable $56.300
Explanation:
To calculate the net realizable value of accounts receivable is necessary to deduct from Account Receivable the total credit amount of the Allowance for Uncollectible Accounts.
The Debit value of Accounts Receivable minus the credit balance of Allowance for Uncollectible Accounts gives the Net Value of Accounts receivables.
Answer:
b
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit
