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postnew [5]
3 years ago
14

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? Sales $

3,900.00 Costs 1,400.00 Depreciation 250.00 EBIT $ 2,250.00 Interest expense 70.00 EBT $ 2,180.00 Taxes (25%) 872.00 Net income $ 1,308.00 a. $1,685.50 b. $1,691.50 c. $1,689.50 d. $1,687.50 e. $1,683.50
Business
1 answer:
labwork [276]3 years ago
8 0

Answer:

Option (d) is correct.

Explanation:

Given that,

Sales = $ 3,900.00

Costs = 1,400.00

Depreciation = 250.00

EBIT = $ 2,250.00

Interest expense = 70.00

EBT = $ 2,180.00

Taxes (25%) = 872.00

Net income = $ 1,308.00

Hence,

Net operating profit after taxes:

= EBIT × (1 - tax rate)

= $2,250.00 × (1 - 25%)

= $2,250.00 × 0.75

= $1,687.5

Therefore, the net operating profit after taxes (NOPAT) is $1,687.5.

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Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whos
stiks02 [169]

Answer:

B. Accept Reject

Explanation:

As we can see that the home computer has the earning of 10% and its return on investment is increased to 13% so it is a better choice for division of home computer to accept the investment and the other division i.e. gaming division should reject the proposal as it is already earned the 20% and if it is accepted so it decreased the return on investment

Therefore the option B is correct

6 0
3 years ago
Montana Industries has computed the following unit costs for the year just ended:
Gre4nikov [31]

Answer:

a. Variable, $85; absorption, $105.

Explanation:

The options that correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing is:

i. Variable costing = Variable manufacturing overhead

Variable costing = $85

ii. Absorption costing = Variable manufacturing overhead + Fixed manufacturing overhead

Absorption costing = $85 + $20

Absorption costing = $105

3 0
3 years ago
What is one benefit of continuing your education after high school?
Molodets [167]

Answer:

C

Explanation:

The most relevant one because university is the place to produce expert in many fields. Thus this will increase your earnings within your course of career.

3 0
3 years ago
Donna, the office manager, spends a large part of her day working closely with those whom she supervises to successfully accompl
Ber [7]

Answer: human managerial skill

Explanation: These skills refers to the ability of a manager to relate, interact with his or her subordinates effectively. These are considered as an important trait in managers as per modern business environment.

     In the given case, Donna works closely with her subordinates as well as with other departments and get better results. Therefore, we can conclude that she is exhibiting human relations skills as she considers the comfort of others and tries to maintain healthy relationships with them.

3 0
3 years ago
Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $90 each. Direct materials cost $15 per
pogonyaev

Answer:

The gross profit margin for the cat condo is 50%

Explanation:

Since the gross profit per unit is not given, so first we have to find it. The calculation is shown below:

= Selling price per unit - Direct materials cost per unit - direct labor costs per unit - Manufacturing overhead per unit

= $90 per unit - $15 per unit - $10 per unit - $20 per unit ( $10 per unit × 200%)

= $45 per unit

Now apply the Gross profit formula which is shown below:

= (Gross profit per unit ÷ selling price per unit) × 100

= ($45 per unit ÷ $90 per unit) × 100

= 50%

7 0
3 years ago
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