An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.
Capital Intensity Ratio = Total Assets/Total Revenue
Return on assets = Net income/Total Assets
Total Assets = Net income/Return on Assets= $389,100/0.086
Total Revenue = Net income/Net Profit Margin = $389,100/0.028
Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33
This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.
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Answer:
D. Customers and suppliers willing to learn and evolve with new technology
Explanation:
In an implementation of any new IT system, the resistance to adoption from different stakeholders in the organizations is one of the most difficult challenges that is faced by the project managers. To overcome this resistance, the project manager needs to be accustomed to the basic principles of change management which involves:
1 - Designing incentive systems that forces all the stakeholders to adopt the new system.
2- Manage proper communication strategy that conveys the benefits of adopting the new system and conduct training for all the users.
However, there will still be resistance from certain suppliers and customers to the adoption of the new system. Which can lead to failed implementation of the system. However by doing the following, any organization can make sure that customers and suppliers quickly become an integral part of the IT system:
1- Take feedback from the customers and suppliers so that not only a more user friendly system can be designed, but also customers will be more invested as they feel they have been part of the decision making process.
2- Invite customers and suppliers to use the company resources to make themselves accustomed to the new system.
Answer:
Division A
If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be:
worse off by $30,000 each period.
Explanation:
a) Data and Calculations:
Production capacity of Division A = 34,000
Selling price per unit to outside customers = $21
Variable cost per unit = $13
Total fixed costs = $105,800
Order from Division B = 10,000
Price that Division B purchases from outside supplier = $18
Selling to Division B instead of selling to outside customers will result in a loss of $3 ($21 - $18) per unit
The total loss = $30,000 ($3 * 10,000)
<span>a. allowing top managers to make decisions, because the other 3 answers could all fall under the first answer. organizations are designed from top down. This makes a. the best answer.</span>
Answer: C. is unreliable.
Explanation:
Kevin has signed the purchase agreement at fair price with good quality. However, the products arrived one month late which disrupted the production, it made Kevin feels that the <u>supplier is unreliable</u> because of the <em>unscheduled delay of steel frames</em>.
