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maria [59]
3 years ago
12

Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp

anies report the same dollar amount for ending inventory and gross profit for the year. Which of the following is most likely true?
A Truman has a higher inventory turnover ratio, and Stapleton has a lower gross profit ratio.

B Stapleton has a higher inventory turnover ratio and higher gross profit ratio.

C Truman has a higher inventory turnover ratio and higher gross profit ratio.

D Truman has a higher inventory turnover ratio, and Stapleton has a higher gross profit ratio.
Business
1 answer:
slava [35]3 years ago
4 0

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

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has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 36,5
solmaris [256]

Answer:

16.89%

Explanation:

As per the given question the solution of simple rate of return for the investment is provided below:-

we need to first find out the accounting profit and depreciation

where

Accounting Profit = Annual Cash Inflow - Depreciation

and

Depreciation =  Investment required in equipment ÷ Life of investment

= $36,500 ÷ 15

= $2,433.33

now we will put the value by using the accounting profit formula.

= $8,600 - $2,433.33

= $6,166.67

So,

Simple Rate of Return = Accounting Profit ÷ Initial Investment

= $6,166.67 ÷ $36,500

= 16.89%

4 0
3 years ago
Firm A has a 21 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in
Aliun [14]

Answer:

a. $7,505

b.$6,840

Explanation:

a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)

Let plug in the formula

After-tax cost = ($9,500 - ($21%*9500)

After-tax cost = ($9,500 - $1,995)

After-tax cost=$7,505

Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505

B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)

Let plug in the formula

After-tax cost =$9,500 -(28%*$9500)

After-tax cost =($9,500 - $2,660 )

After-tax cost=$6,840

Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840

3 0
2 years ago
Why might a business desire fewer customers over more customers? shouldnt the focus of marketing be to acquire as many customers
ehidna [41]
1. most businesses that desire fewer customer probably fall between these categories:
- Those who do not have enough resource/employee to maintain the cutomers
- Those who sell rare collectibles

2. It really depended on the type of business. If the business focus on obtaining high-end/wealthy customers  and maintain highest quality of service, they may prefer lower amount of customers
7 0
3 years ago
Which of the following is identified as a recent trend that has staying power? a. Relationship management b. Hedging c. Task man
Rom4ik [11]

Answer:

The correct answer is a. Relationship management.

Explanation:

Good human relationships within a company are a very important factor in achieving success, not only with the client, but also internally among the team that forms the human capital of the company.

Organizations need to have leaders who know how to manage talent and be able to adapt to changes in the labor market.

Human relationships are the set of rules, principles and techniques for people to establish better relationships with each other. It is the degree of acceptance, sympathy and maturity that we reflect towards others. Without a doubt, a very important aspect within the business organization.

7 0
3 years ago
Ray, the CEO of McNealy Metals, often brags that his company offers the highest salaries in the industry, has excellent working
quester [9]

Answer:

Hygiene factors

Explanation:

The reason is that hygience factors are those factors that deter dissatisfaction in the employees and are all the benefits to employees that an ideal jobs have. In this case the jobs in the company as highest salaries and excelent working conditions in the industry. These are the factors that keeps the employees at least satisfied and is the reason why the employees are not motivated.

5 0
3 years ago
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