1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kifflom [539]
3 years ago
15

Westerville Company reported the following results from last year’s operations: Sales $ 1,200,000 Variable expenses 320,000 Cont

ribution margin 880,000 Fixed expenses 640,000 Net operating income $ 240,000 Average operating assets $ 600,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales $ 240,000 Contribution margin ratio 50 % of sales Fixed expenses $ 84,000 The company’s minimum required rate of return is 15%. Required:
a. What is last year’s margin?
b. What is last year’s turnover?
c. What is last year’s return on investment (ROI)?
d. What is the margin related to this year’s investment opportunity?
Business
1 answer:
lidiya [134]3 years ago
4 0

Answer:

1) Last years' margin = Net operating income÷ Sales    

                              =  240,000÷1,200,000

                              = 0.2= 20%

2) Last years' turnover = Sales ÷ Average operating assets

                                       = 1,200,000 ÷ 600,000

                                        = 2

3) Last years' return on investment = Margin ratio × turnover ratio

                                                             = 20% × 2 = 40%

4) Margin for this years' investment = Net operating income ÷ Sales

                                                           = 36,000 ÷ 240,000

                                                           = 0.15 = 15%

You might be interested in
In economics, all of the following are included among the three main uses of money EXCEPT:
Anestetic [448]
The answer is B, which is weight of gold. I say this because money is used as a means of exchange, that is; it is used to get goods.
  Money is also used to store value because if you pay for something, you value it more. 
   It is also a unit of account. Hope i helped. Have a nice day.
4 0
4 years ago
Read 2 more answers
Tarazzz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Di
zalisa [80]

Answer:

Company net income will DECREASE by $2,000 if the order is accepted.

Explanation:

Company net income will DECREASE by $2,000 if the order is accepted.

Additional order will produce additional sales revenue of $150 per unit

The marginal cost for this order = Variable costs (Direct material + Direct labour + variable cost) =$152 per unit

Since the marginal cost ($152) is more than the revenue ($150)per unit, there will be a loss of $2 per unit.

So the net income of the company will DECREASE by $2000 ($2x 1000)

3 0
3 years ago
The president and founder of a high-tech start-up firm contacted the vice president of HR at the company because she wanted to b
PolarNik [594]

Answer: c. Uniform Guidelines on Employee Selection Procedures

Explanation:

The Uniform Guidelines on Employee Selection Procedures is like a one stop for the knowledge the President of the company seeks. Adopted after Congress passed the Civil Rights Act of 1964, it provides assistance to employers, labor organizations, employment agencies, and licensing and certification boards to comply with requirements of Federal law.

They also apply to all selection procedures used to make employment decisions from interviews to evaluation of performance.

It's a very insightful read really.

7 0
3 years ago
Read 2 more answers
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for
coldgirl [10]

Answer:

Option (A) is correct.

Explanation:

Given that,

Order costs for pepperoni = $10.00 per order

Carrying costs = 4 cents per pound per day

Lead time for each order = 3 days

Pepperoni itself costs = $3.00 per pound

Total Order = 80 pounds of pepperoni

Demand rate = 20

Total ordering cost = Total order × cost per order

                                = 80 × $10

                                = $800

Length of an order cycle:

=\frac{Order\ quantity}{Demand\ rate}

=\frac{80}{20}

= 4 days

3 0
3 years ago
Which of the following is a a form of ownership in which each owner of stock in a cooperative apartment building or housing corp
Maslowich

Answer: Cooperative Ownership

Explanation: In a cooperative ownership, the buyer receives shares of stock in the building corporation and a lease or assignment of the seller's lease of the apartment being sold.A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.Buying a house or renting an apartment aren't the only living arrangements available in the marketplace. Housing cooperatives, colloquially known as co-ops, provide an alternative to the traditional methods of acquiring a primary residence.

5 0
4 years ago
Other questions:
  • According to immanuel wallerstein, currently, there are many countries whose production is owned or leased by dominating countri
    10·1 answer
  • The cellular phone division of Stegall Company had budgeted sales of $950,000 and actual sales of $900,000. Budgeted expenses we
    12·1 answer
  • Le 3-3. assume that zimbabwe and portugal each has 60 machine minutes available. originally, each country divided its time equal
    10·1 answer
  • Many fast-food restaurants compete on lean business concepts. Match each of the following activities at a fast-food restaurant w
    5·1 answer
  • Causal research describes the marketing phenomena under study. B. Causal research is informal and unstructured. C. Causal resear
    11·1 answer
  • Tina enrolls in additional training for her personal development. Which quality is she demonstrating? Tina is demonstrating ____
    12·2 answers
  • On March 1, 2021, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2021, for $99 million (plus accru
    14·1 answer
  • Explain why market power leads to deadweight loss. Firms with market power create deadweight loss because they A. charge a price
    14·1 answer
  • From the following ledger balances, prepare a trial balance for the Whispering Winds Corp. at June 30, 2022. All account balance
    7·1 answer
  • Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!