Match the benefit with its detailed explanation

Return on investment LO A1, A2 ZNet Co. is a web-based retail company. The company reports the following for 2017. Sales $ 23,16

katovenus [111]

Answer:

2017

ROI = 18%

Profit Margin = 30%

2018

ROI = 25.2%

Investment Turnover = 84%

Explanation:

The formulas for the required ratio are as follows,

ROI = Operating income / Average invested assets

Profit margin = Operating Income / Sales

For 2017,

ROI = 6,948,000 / 38,600,000 = 0.18 = 18%

Profit margin = 6,948,000 / 23,160,000 = 0.3 = 30% of sales

For 2018, we compute increased sales first

Sales = 23,160,000 * 1.4 = $32,424,000 after 40% increase

with profit margin staying the same, profit for 2018

Profit = $32,424,000 * 0.3 = $9,727,200

Using the earlier formulas,

ROI = $9,727,200 / 38,600,000 = 0.252 = 25.2%

Investment turnover = Sales / Average invested assets

Investment Turnover = $32,424,000 / 38,600,000 = 0.84 = 84%

Hope that helps.

8 0

3 years ago

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Since fixed costs remain constant in the short run, special orders should be accepted as long as the order price is greater than

NNADVOKAT [17]

Answer:

The given statement is True.

Explanation:

In the short run, fixed costs remain the same. There are only variable costs that are incurring and changing the costs incurred in the manufacturing of the products. So a company should accept the special orders as long as the rice of the order is greater than the variable cost incurred in the production of that order. For example, if there is a bakery which bakes cakes. They have their fixed cost of baking oven, the Chef, electricity, etc. They usually bakes sponge cakes. So if they receive the order of Chocolate cake, they can easily get this order because the fixed costs are same, and there will be a slight difference in the making of chocolate cake that can be covered in the price of the cake. So as long as the variable costs of the product is less than the order price, the company should continue producing the special orders.

4 0

3 years ago

What is product positioning?

Anna35 [415]

Answer:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors and different from the concept of brand awareness.

3 0

3 years ago

A product enters the maturity phase of the life cycle, during which sales are strong but growth is slowing. What product managem

IrinaVladis [17]

Answer: Trying to improve the product’s performance

Explanation:

3 0

3 years ago

Jamal and Keisha each earn money by washing cars and mowing lawns.

mrs_skeptik [129]

Answer:

B: Keisha can specialize in washing cars, because she has the comparative advantage.

C: Specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days.

E: Specialization allows them to earn more money.

Explanation:

Edg

7 0

3 years ago

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