Answer:
Office building
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = Operating Income ÷ Average Operating Assets
It is a mix of operating income and the average operating assets through the return on investment could be computed
Since the return on investment is already given in the question
And, the higher return on investment is the best one for property use
So the office building has a higher return on investment i.e 13.5% which reflects the best for property usage.
Answer: Return on sales is calculated based on sales volume and not profit
Explanation:
This can be explained by understanding the scenario; the price that discounters pay is lower than any other channel. Discounters have high variable cost, they only pay $52 for the Russel with 41percent return on sales. They also larger fixed costs than the other channels and the return on sales is calculated based on sales volume and not profit.
Answer:
Key Points
Explanation:
The government may artificially increase prices through purchasing a portion of the consumer surplus or artificially increase quantity through offering subsidies to producers. This allows the government control over the established equilibrium in agriculture.
Answer: $21,880
Explanation:
First find the after tax operating income:
= (Revenues - variable costs - fixed costs - depreciation ) * ( 1 - tax rate)
= (120,000 - 72,000 - 20,000 - 10,00) * ( 1 - 34%)
= $11,880
Then add back depreciation because it is a non-cash expense:
Operating cashflow = 11,880 + 10,000
= $21,880
