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Leokris [45]
3 years ago
11

Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why i

s our gross profit margin lower than the industry standard and our operating profit margin higher than the industry standard?
Business
1 answer:
Vesna [10]3 years ago
4 0

Answer:

Builtrite has higher than average operating expenses

Explanation:

Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.

A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.

Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.

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The government banned running of an industry near a famous monument Taj Mahal, but ABC limited does not go by order of the court
notka56 [123]

Answer:

No

Explanation:

Taj Mahal is one of the greatest monument in the world. It is very beautiful. It is located in India. It is made up of white marble. Many people from all parts of the world come to visit Taj Mahal.

But recently the color of the marble changes its color to light yellow due to pollution. The companies near by are emitting harmful gases to the atmosphere for which the color of the white marble changed its color and became light yellowish brown.

In the context, company ABC Limited still operating near the Taj Mahal is not fulfilling its responsibility as it is destroying the beauty and existence of the world famous Taj Mahal.

3 0
3 years ago
For the last five years, the HR manager at Fresh Foods has been asking all applicants to appear for a test. The HR manager now i
Troyanec [42]

Answer:

The correct answer is predictive validity test.

Explanation:

A predictive validity test is carried out in order to predict the performance that a collaborator will have in the future. With this dynamic, it is ensured that an honest employee is hired, and that he always acts under the rules of the organization to which he will belong. In general, there are discrepancies compared to what many people can do under certain circumstances, and this test is precisely what they want to know about the performance under different scenarios.

8 0
3 years ago
Read 2 more answers
Colt Carriage Company offers guided​ horse-drawn carriage rides through historic Charleston comma South Carolina. The carriage b
chubhunter [2.5K]

Answer:

1) Colt Carriage Company

Income Statement

For the month ended April 202x

Revenues:

  • Adults passengers $186,300
  • Children $81,000                      
  • Total revenues                                       $267,300

Variable costs:

  • City fees $26,730
  • Souvenirs $7,425
  • Brokerage fees $11,340
  • Carriage drivers $52,650
  • Total variable costs                                  <u>$98,145</u>

Contribution margin                                        $169,155

Period costs:

  • Depreciation $2,900
  • Horse leases $48,000
  • Marketing expenses $7,350
  • Payroll expenses $7,600
  • Total period costs                                  <u>$65,850</u>

Operating profit                                             $103,305

2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.

Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.

Explanation:

since the information is not complete, I looked it up:

Revenues

13,500 passengers:

8,100 x $23 = $186,300

5,400 x $15 = $81,000

total $267,300

variable costs:

fees paid to the city 10% of total revenue

souvenirs $0.55 per passenger

brokerage fees 60% of total tickets x $1.40

carriage drivers $3.90 per passenger

fixed costs:

depreciation $2,900

horse leases $48,000

marketing expenses $7,350

payroll expenses $7,600

4 0
3 years ago
What a example of a social news site
scoundrel [369]

Explanation:

  • It encourages people community to post their news
  • The news can be posted for a group or to a general public too
  • The group or the general public can comment on the news
  • The news which is interesting based on the reviews will be given the top priority

Example:

Reddit - A large site with huge number of user  

Digg - This is also quite popular and it has different categories of news where the user can view news based on his/her interest.

6 0
2 years ago
The function y= -6(x - 5)2 + 12 shows the daily profit (in hundreds of
tino4ka555 [31]

Answer:

D. Interpretation: The zeros are where the daily profit is $0.00

zeros: x = 3.586 and x = 6.414

Explanation:

We have been given the following daily profit function;

y=-6(x-5)^{2}+12

where y is the profit (in hundreds of  dollars) of a taco food truck

and x the price of a taco (in dollars)

The zeros of this profit function can be obtained by solving for x in the following equation;

0=-6(x-5)^{2}+12

These will simply be the x-intercepts of the profit function. That is the points where the profit function crosses or intersects the x-axis.

Therefore, an interpretation of the zeros of this function would be;

The zeros are where the daily profit is $0.00

These zeros can be evaluated graphically. We first obtain the graph of the profit function as shown in the attachment below;

We then determine the x values where the graph crosses the x-axis. These values will represent the zeros of our profit function. From the graph, these points are;

x = 3.586 and x = 6.414

8 0
3 years ago
Read 2 more answers
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