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qaws [65]
3 years ago
13

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

Wales Sales $ 901,000 $ 2,480,000 Average operating assets $ 530,000 $ 620,000 Net operating income $ 54,060 $ 74,400 Property, plant, and equipment (net) $ 248,000 $ 198,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) 2. Which divisional manager seems to be doing the better job? Queensland division New South Wales division
Business
1 answer:
bekas [8.4K]3 years ago
3 0

Answer:

(1) 6%; 1.7; 10.20%

(2) 3%; 4; 12%

Explanation:

ROI = Margin × Turnover   (Note Margin in % and Turnover in Ratio)

Where,

Margin = Net operating income ÷ Sales  

Turnover = Sales ÷ Average operating assets

For Queensland:

Margin = 54,060 ÷ 901,000

            = 6% (approx)

Turnover = 901,000 ÷ 530,000

               = 1.7

ROI = 6% × 1.7

      = 10.20%

For New south wales:

Margin = 74,400 ÷ 2,480,000

            = 3% (approx)

Turnover = 2,480,000 ÷ 6,20,000

               = 4

ROI = 3% × 4

      = 12%

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The opportunity cost of an additional 100 dolls is 100 fire trucks. b The opportunity cost of an additional 100 dolls is 50 fire
SVEN [57.7K]

Answer:

The correct answer is The opportunity cost of an additional 100 dolls increases as more dolls are produced.

Explanation:

The opportunity cost is understood as the cost incurred in making a decision and not another. It is that value or utility that is sacrificed for choosing an alternative A and neglecting an alternative B. Taking a path means that the benefit offered by the discarded path is waived.

In any decision taken there is an implicit waiver of the utility or benefits that could have been obtained if any other decision had been made.

For each situation there is always more than one way to address it, and each form offers a greater or lesser utility than the others, therefore, whenever one or the other decision is made, the opportunities and possibilities offered by the others will have been renounced, that may be better or worse (opportunity cost greater or lesser).

7 0
3 years ago
Packaging Products, Inc., sends its standard purchase-order form to Quality Box Company to evidence a sale of packaging material
natima [27]

Answer:

Option D. Any of the above.

Explanation:

The reason is that the contract is not formed until the both parties don't agree on the terms and conditions of the contract which includes:

  • New terms and conditions because as we know the business environment is consistently changing like inflation changes, etc (Option A).
  • The acceptance is always required for the contract formation (Option B).
  • Additional clauses of the contract are new clauses and acceptance is required for these to form a contract (Option C).

So all of the options can alter the contract existence. So the right answer is option D.

4 0
3 years ago
Read 2 more answers
A manufacturer reports the following costs to produce 10,000 units in its first year of operations:
rewona [7]

Answer:

Option (C) is correct.

Explanation:

Variable overhead per unit:

= Variable overhead ÷ Total units produced

= $70,000 ÷ 10,000

= $7 per unit

Fixed overhead per unit:

= Fixed overhead ÷ Total units produced

= 120,000 ÷ 10,000

= $12 per unit

Total product cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= 10 + 6 + 7 + 12

= $35 per unit

7 0
3 years ago
A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil
Ierofanga [76]

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

3 0
3 years ago
Eddie was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Eddie perceived price as _____
Inessa [10]

Answer:

Here answer to the first fill in the blank is money paid and answer for the second fill in the blank is overall sacrifice.

Explanation:

Here Eddie has perceived price as money paid for the purchase of his favorite beverage, he is ready to drive 30 miles for this beverage , just because he is saving a dollar on it, so from the Eddie's point view , driving 30 miles to get the beverage is worth it . But as per the most of the customers , Eddie is making an overall sacrifice by driving 30 miles to get the beverage , just because he is saving dollar on it, so from the most customers point of view , driving 30 miles is not worth it and a lot of sacrifice is being made.

7 0
3 years ago
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