1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexxandr [17]
2 years ago
12

Economic efficiency indicates that

Business
1 answer:
Neporo4naja [7]2 years ago
6 0
Nearly always makes sense to stop an activity well before perfection is achieved.
You might be interested in
Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals)
Studentka2010 [4]

Answer:

ROE = 13.04%

ROIC = 7.83%

Explanation:

Data provided in the question:

Total assets = $940,000

Total current liabilities = $130,000

Interest rate on its debt = 8%

Tax rate = 40%

The firm's basic earning power ratio = 14%

Debt-to capital rate = 40% = 0.40

Now,

Basis earning power = EBIT ÷ Total Assets

or

EBIT = Basis earning power × Total assets

= 14% × $940,000

= $131,600

Total Assets  = Total Debt + Total Equity + Total Current Liabilities

$940,000 = Total Debt + Total equity + $130,000

Debt + Equity  = $940,000 - $130,000

= $810,000

Debt to capital ratio = Debt ÷ [ Debt + Equity ]

0.40 = Debt ÷ $810,000

or

Total Debt = $324,000

Thus,

Debt + Equity  = $810,000

or

$324,000 + Equity = $810,000

or

Equity = $810,000 - $324,000

= $486,000

Interest = 8% of Debt

= 0.08 × $324,000

= $25,920

Taxes = 40% of [ EBIT - Interest ]

= 0.40 × ($131,600 - $25,920 )

= $42,272

Therefore,

ROE = [ EBIT - interest - Taxes ] ÷  Equity

= [$131,600 - $25,920 - $42,272 ] ÷ $486,000

= 0.1304

= 13.04%

ROIC = [ EBIT - interest - Taxes ] ÷ Total capital

= [$131,600 - $25,920 - $42,272 ] ÷ [Debt + Equity]

= [$131,600 - $25,920 - $42,272 ] ÷ $810,000

= 0.0783 = 7.83%

5 0
2 years ago
Knox Company has a new product with a projected selling price of $6.00 each. It estimates that it could sell 100,000 units annua
Pachacha [2.7K]

Answer:

350,000

And if done per unit, $3.50

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

The target cost of the product is the difference between the selling price and the anticipated profit.

Target cost per unit

= $6.00 - $2.50

= $3.50

Total Target cost = $3.50 * 100,000

= $350,000

6 0
3 years ago
Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 perce
Dahasolnce [82]

Answer:

A. Debit: Bad Debt Expense 2,500

Credit: Allowance for Doubtful Accounts 2,500

250,000 x .01 = 2,500

B. Debit: Bad Debt Expense 2,750

Credit: Allowance for Doubtful Accounts 2,750

3,000 - 250 = 2,750

8 0
3 years ago
A municipal bond is paying a 6% annual yield. An equivalent risk corporate bond is paying 7%. Investors with a tax rate of ____
faltersainse [42]

Answer:

The correct answer is 25%

Explanation:

To calculate the value of the tax rate to decide on the municipal bond, we must take the information of the annual yield minus the expenses associated with this product, on the interest of the corporate bond:

Tax Rate = 1 - (0.0525 / 0.0700) = 25%

In this way, 25% or more, is a percentage of the tax rate that can make them decide on the municipal bond option.

6 0
2 years ago
A furniture company is producing two type of furniture. Product A requires 8 board feet of wood and 2 Ibs of wicker. Product B r
Blizzard [7]

Answer:

Maximize 30A + 40B.

Explanation:

Given that

Profit margin of product A = $30 per unit

And, the Profit margin of product B = $40 per unit

And, let us assume that

Number of product A produced is A

And, the Number of product A produced is B

So, the total profit is

= 30A + 40B

And, this reflects the maximum profit

All other information which is not given is not relevant. Hence ignored it

7 0
3 years ago
Other questions:
  • What type of form is required in order ofr cvs pharmacy to bill medicare part b for the dispensed prescription?
    13·1 answer
  • A sale of goods was denominated in a currency other than the entity’s functional currency. The sale resulted in a receivable tha
    15·1 answer
  • Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvem
    14·1 answer
  • A study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visit Yellowston
    5·1 answer
  • Goods held on consignment are Select one: a. included as part of no one's ending inventory. b. included in the consignee's endin
    9·1 answer
  • Which of the following would be considered a savings alternative?
    14·1 answer
  • What is the best way to identify or praise children's actions or behavior?
    5·1 answer
  • Select the type of business that is most likely to obtain large amounts of resources by issuing stock. a. government entity b. p
    10·1 answer
  • explain the role of beliefs, customs and attitude in communication and how they act as input communication.​
    12·1 answer
  • reducing the price of laptop computers is considered a (one word) incentive since the opportunity cost decreases when the price
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!