Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
Answer:
Direct labor= $51,840
Explanation:
Giving the following information:
Standard Hours= 27 minutes
Standard Rate per Hour= $6
Standard Cost= $2.70
During August, 9,260 hours of direct labor time were needed to make 19,200 units of the Jogging Mate.
We need to determine the standard cost for 19,200 units.
Direct labor= standard cost per unit*number of units
Direct labor= 2.7*19,200= $51,840
Answer:
D. Flexible accumulation
Explanation:
Flexible accumulation are strategies used by big companies to accumulate profits in a time of globalization enabled by improved communication and transportation technologies. It is a form of capitalism where big corporations consolidate production of commodities in low-wage economies overseas.
In times like this, the growth in real values for these corporations rest in labour exploitation. Flexible accumulation has very negative impact on the corporation home country. Apart from putting workers out of jobs as stated, weakened labour union and radical restructuring of labour markets are amongst the negative impacts of flexible accumulation.