All categories

3 years ago

Condensed financial data are presented below for the Phoenix Corporation:

Business

1 answer:

dybincka [34]3 years ago

6 0

Answer:

profit margin 7.77%

Interpretation: from evey dollar of sales the firm achieves almost 8 cent of net income

inventory turnover ratio 3.45

Interpretation: the inventory is sold 3 and a half times during the year

Explanation:

the profit margin is the quotient between net income and sales.

$\frac{net \: income}{sales} = $profit margin$

127,500 / 1,640,000 = 7.77%

the inventory turnover wil be the cost of good sold over the average inventory during the year

(312,500 + 257,500)/ 2 = 285,000

982,500 / 285,000 = 3,447368421

You might be interested in

This management theory assumes there is no one best way to manage?

Kobotan [32]

The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.

8 0

3 years ago

Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?

Pepsi [2]

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0

3 years ago

Are there any truly free dating websites

sergejj [24]

Honestly not really unless youre into match or something like that but match is basically just a app that most people use to find casual sex.

7 0

3 years ago

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4

posledela

Answer:

D. Should Shut Down

Explanation:

A perfect competition firm is at profit maximising equilibrium where : Marginal Revenue [Price] = Marginal Cost .

If MR > MC : Firm's additional production is profitable, it tends to increase production. If MR < MC : Firm's additional production is loss making, it tends to decrease production.

However, If firm's Price i.e MR < Average Variable Cost : The firm's per unit price is even unable to cover it's per unit average variable cost. This situation is referred to as 'Shut Down' point & firm should close down its production in the case.

Given : MR = P = 3 ; MC = 4 ; AVC = 3.5 . The firm's price P (3) is not only lesser by its Marginal Cost MC (4), to decrease production ; but also lesser than its Average Variable Cost AVC (3.5) . So, the firm should shut down.

7 0

3 years ago

The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. It

zysi [14]

Daily grinds inventory value = coffee maker with timer value x n units + coffee maker without timer in x n units

where:
coffee maker with timer value = $35000
coffee maker without timer = $10000
n= 5 units each

Daily grinds coffee maker inventory value = ($35000 x 5)+( $10000 x 5)
= $225000

5 0

3 years ago