Answer:
The correct answer for option (a) is 28.29% and for option (B) is 2.65%.
Explanation:
According to the scenario, the given data are as follows:
Initial price = $117
Ending price = $147
Dividend = $3.10
(a) We can calculate the Total return percentage by using following formula:
Total return percentage = ( Ending Price - Initial Price + Dividend) ÷ Initial Price
By putting the value, we get
Total return percentage = ( $147 - $117 + $3.10) ÷ ( $117)
= 28.29% (approx).
(b). we can calculate the dividend yield by using following formula:
Dividend Yield = Dividend ÷ Initial Price
By putting the value, we get
Dividend Yield = $3.10 ÷ $117
= 2.65%
Answer:
C. using more liberal credit terms to increase sales
Explanation:
According to the question it is given that the ratio of account receivable turnover has measured that comes 12 times which means it took 30 days
= 365 ÷ 12
= 30.41
= 30 days
But according to the competition, the ratio of account receivable turnover is 8 times so the competitor took 45 days
Therefore the Management of marian would have more liberal credit terms that would increase the sales
Answer:
Sales Revenues 26100
COGS <u> 5655</u>
gross profit 20445
rent expense 1600
depreciation expense 200
operating expense <u>2600</u>
net income 16045
Sales Revenues 26100
Variable Cost <u> 6305 </u>
Contribution margin 19795
rent expense 1600
depreciation expense 200
fixed operating expense<u> 1950 </u>
net income 16045
Explanation:
traditional:
COGS
$12 tub / 30 ice cream cones = $0.40
+ 0.25 ice cream cones
total per unit 0.65
8,700 x 0.65 = 5655
Gross profit: sales revenue less COGS
then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.
contribution the variable cost will be subtracted from the sales revenues
that will include the 75% of the operating expenses
The difference between sales revenue and variable cost is called contribution margin.
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