Answer:
a. Plan I is better is we drive 300 miles in a day.
b. 150 miles.
Explanation:
a. if mileage is 300 then rental charges will be,
Plan I : $36 + 17 cents * miles
$36 + 0.17 * 300 = $41.10.
Plan II : $24 + 25 cents * miles
$24 + 0.25 * 300 = $99.00
Plan I total cost for 300 miles is $41.10 whereas Plan II total cost for 300 miles is $99.00. Plan I is better plan and cost effective.
b. For mileage (m) calculation we will use equation;
Plan I = Plan II
$36 + 0.17m = $24 +0.25m
0.25m - 0.17m = $36 - $24
m = $12 / 0.08
m = 150 miles.
Answer:
a) Firm’s return on assets = 11.46 %
b) Return on stockholders’ equity = 19.37%
c) Profit margin = 3.27%
Explanation:
a) Return on assets = 
= 
b) Return on stockholder's equity = 
Equity =Total assets - Debt = $1,710,000 - $698,000 = $1,012,000
Return on equity = 
c) Asset Turnover ratio = 
= 3.5
then Net sales = 3.5 X Total Assets = = 3.5 X $1,710,000 = $5,985,000
Profit margin = ![\frac{Net profit}{Net sales} X 100 [tex]= \frac{196,000}{5,985,000} X 100 = 3.27 percent](https://tex.z-dn.net/?f=%5Cfrac%7BNet%20profit%7D%7BNet%20sales%7D%20X%20100%20%5Btex%5D%3D%20%5Cfrac%7B196%2C000%7D%7B5%2C985%2C000%7D%20X%20100%20%3D%203.27%20percent)
a) Firm’s return on assets = 11.46 %
b) Return on stockholders’ equity = 19.37%
c) Profit margin = 3.27%
Question Options:
constant returns to scale.
diseconomies of scale.
rising fixed costs.
economies of scale.
Answer: ECONOMIES OF SCALE.
Explanation: Economies of scale in business refers to the characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. Here, production is efficient and the best value is received from the resources available thereby making costs per unit of output will be larger.
Answer: Please see answer in explanatory column
Explanation:Classifying each according to cash flow activity in terms of operating, investing, or financing activity gives
(a) Purchase of equipment.-----investing activity
(b) Sale of building.-----investing activity
(c) Redemption of bonds.-----financing activity
(d) Cash received from sale of goods. ------investing activity
(e) Payment of dividends.-------financing activity
(f) Issuance of capital stock. -------financing activity
Answer:
She gets to choose her hours, pick where she works, etc
Explanation:
If she owns the company then she chose her work conditions
