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Sloan [31]
3 years ago
10

Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the

two divisions for the current year: Retail Division Wholesale Division Operating income $ 2,500,000 $ 6,000,000 Operating assets $ 16,000,000 $ 36,000,000 Terra Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division appears to have performed better?
a. Wholesale division.
b. The answer cannot be determined using the information provided.
c. Both divisions have the same results.
d. Retail division.
Business
1 answer:
sveta [45]3 years ago
3 0

Answer:

a. Wholesale division.

Explanation:

The formula to compute for return on investment is shown below:

Return on investment = Operating Income ÷ Operating Assets

For Retail Division, it would be

= $2,500,000 ÷ $16,000,0000

= 15.625%

For Wholesale Division, it would be

= $6,000,000 ÷ $36,000,0000

= 16.67%

Based on the calculation, the wholesale division perform better

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Genrish500 [490]

Answer:

$ 132,500

$4,250

$9000

Explanation:

From the given information:

Christina Haley of San Marcos who's aged 57 years recently suffered from stroke.

She was in intensive care for 3 days and was hospitalized for 10 more days

Total bill = $135,500

After Discharge;

she spent 25 days in a nursing home at a cost of $170 per day

Amount earned by Christiana per month at her work = $4500

She missed 2 months of going to work.

Christina had a health insurance plan through her employer.

The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap

1. How much of Christina’s direct medical expenses was paid by her insurance policy?

The amount the insurance policy paid  can be known by the expression:

= Total bill amount for the care - deduction for policy - coinsurance cap

= $135,000 - $1000 - $2,000

= $ 132,500

2. What did Christina have to pay for her nursing home care?

We are being told that She spent 25 days in a nursing home at a cost of $170 per day

Thus; the amount  Christina have to pay for her nursing home care = 25 × $ 170

= $4,250

3. How much income did Christina lose?

We knew she missed two months from work and she collect $4500 per month.

Thus the amount of income she lose =  $4500 × 2

the amount of income she lose = $9000

5 0
3 years ago
Luca's parents set firm rules but are responsive to his needs. They give him a chance to explain himself and also explain their
Zina [86]

Answer:

This is a typical super-protective parenting style. In my opinion this parent´s behavior is not positive and is out  of use. Nowadays parents try to talk more, explain dangerous to teens and give them some freedom to have a good time with friends.

Explanation:

6 0
3 years ago
Read 2 more answers
The industrial organization (I/O) model of above-average returns:
lara [203]

Answer:

The answer is A) Puts emphasis on the external environment, which plays a role in determining a company´s ability to achieve above-average returns.

Explanation:

The I/O Model of Above-Average Returns basically assumes that the industry in which a company decides to compete in has a much larger influence on performance (earnings and profit) than the choices the managers of this company make.

The basic assumptions of this organization model are:

  • The external environment imposes pressures and constraints that determine the strategies of the company and will result in above average returns.
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  • Decision-makers within the company are assumed to be rational and committed to acting in the company´s profit-maximizing behaviors.

8 0
3 years ago
The slope of the production possibility frontier is determined by the _____ of expanding production of one good, measured by how
Ket [755]

Answer:

The correct answer is the opportunity cost of producing a good.

Explanation:

The production possibility curve or frontier shows all the different bundles of two goods that can be produced using the given resources.

The opportunity cost of a good is the amount of other good sacrificed to produce this one.

The slope of production possibility curve represents the opportunity cost of producing a good.

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3 years ago
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass
Setler [38]

Answer:

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Explanation:

Direct Material relates to the basic inputs required to make the final good.

Here, for the information it is provided that, PC Works assembles custom computers, which are supplied by various manufacturers.

Since the main business of PC Works is to assemble the computers, installing a hard disk will be the main component of service, thus, It is part of direct material.

5 0
3 years ago
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