Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
Answer:
a constant advertizing system! people need to be remminded of your product in order to keep buying at a relatively steady rate!
Answer:
Explanation:
First of all we shall calculate the present value of an annuity( at the end of 7 years ) of 1475
at interest rate of 6/12 = .5 % for total instalment of 12 x 8 = 96 ( 6% compounded monthly )
rate of intt .5% , no of instalment 96
PV of annuity of 1475
= 112252.66
This amount has to be discounted at 9 % to present value for 7 years
or calculated at 9/12 = .75% for 84 instalment
PV of 112252.66
= 59925.55
Now , we shall calculate PV of annuity of 1475 for 7 years compounted monthly ( rate of intt .75 % , no of instalment 84)
PV of annuity of 1475
= 91671.84
Total value
= 59925.55 + 91671.84
= 151597.39
Answer:
a. $4,322.74
b. Yes
Explanation:
a. The computation of December futures is shown below:-
December futures = June futures × (1 + 1.9%)
= $1490.60 × (1 + 1.9%)
= $1490.60 × 2.9
%
= $4,322.74
Since the current interest rate is 3.8% and the contract is expired in 6 months so we half the interest rate i.e 1.9%
b. Yes, there is an arbitration opportunity here due to the difference between the future price of December. The real futures price for December is $1,500 and the potential price for December's parity relationship is $4,322.74
Answer:
The marginal cost to Marilyn of a cup of coffee is $2.50
Explanation:
Marginal cost = change in cost/change in quantity = $7.50 - $5.00/3 - 2 = $2.50/1 = $2.50
