In the given question GP ratio will be 53.4%
Here Net sales= 296000 $
Cost of goods sold= 138000 $
average inventory= 50000 $
Gross profit= Net sales- Cost of goods sold
=296000-138000
=158000
Formula for calculating Gross profit ratio is:
Gross profit/ Net sales *100
= 158000/296000*100
=53.4%
Gross profit ratio is a financial ratio which measures the performance and efficiency of a business by dividing its gross profit by the total net sales. The gross profit ratio can also be expressed in the form of percentage by multiplying the result by 100.
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Answer:
$5 per unit.
Explanation:
At an activity level of 3,000 units, we have:
Variable cost per unit = Total variable cost / Units produced = $15,000 / 3,000 = $5
Since the variable cost per unit must be equal at both lowest and highest level of activities, theerefore, the variable cost per unit at 3,500 is also $5 per unit.
Answer:
The correct answer is : D. is not entirely free from the international and foreign environments.
Explanation:
In a Domestic Business, the economic transaction and all its processes are conducted inside the geographical limits of the country. On the other hand, International business refers to a business that doesn't have a restriction to a single country. In this case, the trade occurs between two countries internationally.
Answer:
$10,500 loss
Explanation:
The computation of the net income affected is shown below:
Since Big Ben purchased shares of Little Trick on 1st April ,so it has the right to receive 30% of the net income for nine months i.e from April 1 to December 31
Now the Earnings from Little Trick is
= $20,000 × 30% × 9 months ÷ 12 months
= $4,500
And, the Compensation paid is $15,000
So, the loss is
= $15,000 - $4,500
= $10,500
Answer:
A) have zero alphas
Explanation:
Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.
This is why the CAPM model only considers beta in its calculation.
