Answer:
1,732,960
Explanation:
The sales is $37,080,000
The net operating income is $3,108,960
The average operationg assets is $8,600,000
The required rate of return is 16%
The divisional residual income can be calculated as follows
= 3,108,960-(16/100×8,600,000)
= 3,108,960 - (0.16×8,600,000)
= 3,108,960-1,376,000
= 1,732,960
Hence the residual income is closest to $1,732,960
Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
Total monthly saving = $1,315
Explanation:
Given:
Oakland Los Angeles
Cost Housing $565 $1200
Food $545 $655
Health Care $245 $495
Taxes $450 $625
Other Necessities $350 $495
Find:
Total monthly saving
Computation:
Saving in house = $1200 - $565 = $635
Saving in food = $655 - $545 = $110
Saving in health care = $495 - $245 = $250
Saving in taxes = $625 - $450 = $175
Saving in necessities = $495 - $350 = $145
Total monthly saving = $635+$110+$250+$175+$145
Total monthly saving = $1,315
Answer:
Because liquid assets are a part of the entire wealth/value of a company.
Explanation:
If Jeff Bezos has 60 billion of dollars worth of assets like buildings and physical investments, that isnt his total wealth, you have to count in his liquid cash as well.