Answer:
the Company C is the most profitable
Explanation:
The computation of the profit margin for the following companies is
We know that
Profit margin = Net income ÷ Net sales
Now
<u>Company Net income Net sales Profit margin </u>
a $5,253 $44,140 11.9%
b $86,033 $392,846 21.9%
c $90,324 $251,598 35.9%
d $63,120 $1,434,550 4.4%
e $72,787 $428,158 17.0%
Based on the calculation above, the Company C is the most profitable
Answer:
C. The price of an input has been affected; supply will increase
Explanation:
Blueberries are an input in the production of pies. The bountiful harvest would reduce the price of blueberries. The demand for blueberries by bakeries would increase and the supply of blueberries would increase.
I hope my answer helps you
Inventory turnover is computed by dividing average merchandise inventory by cost of goods sold. This statement is false.
Inventory turnover is the rate at which inventory stock is sold, or can be used, and can be replaced. The inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory of the same period.
The inventory turnover ratio is the number of times a company has sold as well as replenished its inventory over a specific amount of time. The formula of inventory turnover can also be used to calculate the number of days it will take to sell the inventory in hand.
Inventory Turnover Ratio is defined as = Cost of Goods Sold / Avg. Inventory
To know more about inventory turnover ratio here:
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Answer:
When a company is using conventional costing methods, the costs are allocated based on volume so those products with a high volume will get a higher share of the costs.
When Activity-based costing is used however, costs are assigned more accurately which will lead to the actual products that are causing the costs incurring them instead of those high-volume products so it will appear as though overhead costs have shifted from high-volume products to low-volume products.
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.