All categories

3 years ago

Calculating the rate of return allows you to determine: ________.

Business

1 answer:

AnnZ [28]3 years ago

5 0

Answer:

The answer is C. If the investment is earning enough to meet or exceed your investment goals

Explanation:

Rate of return is calculated by dividing the return you receive on your investment by the initial cost of the investment and then by multiplying it by 100.

Simply, this shows you how much you've received out of the investment you made initially.

So, a 10% rate of return means you have received 1/10th out of the initial investment and that at this rate, it will take 10 years to cover the cost of the initial investment.

You might be interested in

Select the items below that describe rational behavior in economics

Lana71 [14]

In economics rational behavior involves getting the most satsfaction from a choice and working within the given conditions.

3 0

3 years ago

The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhe

Rzqust [24]

Answer:

Over applied Overhead =$ 42,500

Explanation:

Actual Overhead $325,000

Estimated Overhead $350,000

Over applied overhead is when the Predetermined overhead is more than the actual overhead . Under applied overhead is when the Predetermined overhead is less than the actual overhead .

Predetermined Overhead rate= Overhead / total direct labor hours

= 350,000/ 500,000 (100)= 70%

Applied Overhead = Predetermined Overhead rate( actual direct labor hours)

= 70 % (525,000) = $367,500

Applied Overhead $367,500

Less Actual Overhead $325,000

Over applied Overhead =$ 42,500

5 0

3 years ago

A company sold 10,000 shares of its common stock at par value for a total of $45,000. What two accounts are affected by the tran

noname [10]

Answer:

Cash and contributed capital

Explanation:

The journal entry to record the sale of common stock is shown below:

Cash A/c Dr $45,000

To Common stock A/c $45,000

(Being the common stock is sold)

For recording this transaction, we debited the cash account as the sale is made which increases the asset and credited the common stock account because the common stock is sold which reduces the equity balance.

8 0

3 years ago

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu

FromTheMoon [43]

Answer:

A. $7,275,000

B. $436,500

C. YES

Explanation:

A. Calculation for how many dollars will the cash management system free up

First step is to calculate for Additional collections

Using this formula

Additional collections=Daily collections× Numbers of days to speed up

Let plug in the formula

Additional collections= $2,250,000 million per day × 3 days speed up

Additional collections=$6,750,000

Second step is to calculate for delayed disbursements using this formula

Delayed disbursements= Daily disbursement × Numbers of Days for slow down

Let plug in the formula

Delayed disbursements= $1,050,000 million per day ×0.5

Delayed disbursements= 525,000

Last step is to calculate for the freed up fund using this formula

Freed up fund=Additional collections+Delayed disbursements

Let plug in the formula

Freed up fund=$6,750,000 + 525,000

Freed up fund=$7,275,000

Therefore the amount of dollars that the cash management system will free up is $7,275,000

B. Calculation for how much will the income be using this formula

Income =Freed up fund× Interest rate

Let plug in the formula

Income=$7,275,000×6%

Income=$436,500

Therefore the income amount will be $436,500

C. YES it should be implemented reason be that the income amount of $436,500 is $36,500 ($435,600- $400,000) higher than New system total cost of the amount of $400,000

3 0

3 years ago

When does a business make a profit?<br> A business makes a profit when its exceed its .

Rasek [7]

Answer:

when sales revenue exceed costs

Explanation:

8 0

3 years ago