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Wittaler [7]
4 years ago
13

Scribe​ Company, a manufacturer of writing​ instruments, provides the following financial​ information: Pen Division Pencil Divi

sion Operating income $ 100 comma 000 $ 40 comma 000 Net sales $ 500 comma 000 $ 175 comma 000 Total assets at Jan. 1 $ 560 comma 000 $ 300 comma 000 Total assets at Dec .31 $ 610 comma 000 $ 275 comma 000 Calculate the return on investment for the Pencil Division.​ (Round your answer to two decimal​ places.)
Business
1 answer:
Ulleksa [173]4 years ago
4 0

Answer:

The return on investment for the Pencil Division is 14,55% (two decimal​ places.)

Explanation:

The Return on Investments is calculated as ;

Return on Investments = Divisional Profit Contribution / Assets Employed in the Division

                                      = $40,000 / $275,000 × 100

                                      = 14,545454 or 14,55% (two decimal​ places.)

Conclusion :

The return on investment for the Pencil Division is 14,55% (two decimal​ places.)

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During the first year, the marginal cost equals approximately the minimum EUAC cost. This is why the minimum cost of EUAC to maintain the defender throughout the year is $21,000. Since the minimum EUAC cost to maintain the defender the first year is less than the minimum EUAC cost to the challenger, the defender should not be substituted. This means, it is not economically feasible to make the replacement at this time.

Explanation:

According to the exercise, it is necessary to evaluate to know if it is economic to replace the defender by the challenger. For the calculation, the defender's information is: the defender's market value up to $3000. The expenses are $20000. The information regarding the challenger is: the installation cost $30000, the annual expenses $ 16000, the surrender value $ 2000, the economic life is 12 years, and the interest rate before taxes is 15%.

The minimum EUAC for the challenger is equal to:

M_{EUAC} =installation-cost(A/P,i,n)+annual-expenses-salvage-value(A/F,i,n)\\M_{EUAC}=30000(A/P,15percent,12)+16000-2000(A/F,15percent,12)\\M_{EUAC}=(30000*0.1845)+16000-(2000*0.0345)=21466

The minimal cost is equal to:

M_{cost} =loss-in-marker-value-during-first-year+expenses-during-first-year\\M_{cost}=1000+20000=21000

3 0
3 years ago
Multiple answers
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Answer:

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3 years ago
Review the Inquirer to determine Chester’s current strategy. Where will they seek a competitive advantage? From the following li
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Answer:

a) Increase demand through TQM initiatives

b) Offer attractive credit terms

c) Seek excellent product designs, high awareness, and high accessibility

e) Seek the lowest price in their target market while maintaining a competitive contribution margin

g) Reduce labor costs through training and recruitment

Explanation:

Chester by pursuing the top five targets listed above would Have a competitive advantage among it's competitors. First their total quality management strategy(TQM) would increase customer satisfaction and spiral their demand growth. Secondly attractive credit terms would increase demand by encouraging customers that require credit facilities for their purchases. Excellent product designs and more awareness would increase product quality while also bring more awareness to the business. Reducing price would also increase demand and since they'd be able to keep a competitive contribution margin they would be able to stay ahead in the market. Lastly reduction in labour costs will have a ripple effect on the whole business as costs will be reduced and cost of goods will be reduced to ensure lower prices and high demand

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3 years ago
why is it necessary to learn various aspects about the country with the person was to go for foreign employment​
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