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3 years ago

All of the following equations represent return on investment (ROI) EXCEPT:

Business

1 answer:

slamgirl [31]3 years ago

7 0

Answer:

A. efficiency × productivity.

Explanation:

Return of Investment is a financial measure of profitablity from the investment of the company. It is a ratio of profit from the investment to the cost of invesment. It is helpful in comparing profitablity of several investment.

Return of investment (ROI)= $\frac{operating\ income}{sales\ revenue}\times \frac{sales}{Total\ asset}$

Return of investment (ROI)= $sales\ margin \times capital\ turnover$

Return of investment (ROI)= $\frac{Operating\ income}{Total\ asset}$

ROI also show percentage of operating income from each dollar of assets.

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Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units.

harkovskaia [24]

Answer:

Walker Company

a. Merchandise Purchases Budget for the months of July, August, and September:

July August September

Sales units 210,000 290,000 290,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500

Purchases 222,000 290,000 273,500

b. The ratio of ending inventory to the next month's sales = 15% (Ending Inventory/Sales next month * 100)

c. The units budgeted for sale in October = 180,000 units.

Explanation:

a) Data and Calculations:

September ending inventory = 27,000 units

Ending inventory always equal to 15% of budgeted sales for the following month.

Sales (Units) Purchases (Units)

July 210,000 222,000

August 290,000 290,000

September 290,000 273,500

October 180,000

July August September October

Sales units 210,000 290,000 290,000 180,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500 27,000

Purchases 222,000 290,000 273,500

6 0

3 years ago

Which of the following is an example of an unsought good? A. Cameron purchases a new bike. B. Jordan buys paper towels. C. Taylo

NikAS [45]

Answer:

D. Riley buys new windshield wipers for her car.

Explanation:

By definition unsought goods are those which are not purchased out of want or desire, but the purchases of which arise due to any of the following circumstances:

danger - for example a fire extinguishers sought in the incident of a fire
fear - for example the fear of crashing into another car (in this case)
unexpected events - for example funeral services sought at the time of death

4 0

4 years ago

When producers do not have to pay the full cost of producing a product, they tend to?

Agata [3.3K]

When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.

6 0

3 years ago

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Y

nordsb [41]

Answer:

The payback period of the investment is 6.5 years

Explanation:

1. In order to calculate the payback period of the investment we would have to make the following calculation:

payback period of the investment=Year before full recovery+(Unrecovered cost at the start/cash flow during the year )

payback period of the investment=6+ ($23,000−$20,500) /$5,000

payback period of the investment=6.5 Years

The payback period of the investment is 6.5 years

5 0

3 years ago

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:

Natali [406]

Answer:

Pro Forma Income Statement 30,000 units

Sales($90 * 30,000) $2,700,000

Minus Variable Costs $1,620,000

- Direct Material ($18 *30,000)=540,000

- Direct Labor ($9*30,000) =270,000

- Overhead cost(12.60*30,000)=378,000

- Selling and admin (14.40*30,000)=432,000

Contribution $1,080,000

minus Fixed Costs $378,000

- Manufacturing costs = 270,000

- Selling and admin cost = 108,000

Net Income $702,000

FLEXIBLE BUDGET INCOME STATEMENT

29,000 UNITS 31,000 UNITS

Sales $2,610,000 $2,790,000

Minus Variable costs $1,566,000 $1,674,000

Direct Material $522,000 $558,000

Direct labor $261,000 $279,000

Overhead cost $365,400 $390,600

Selling and Admin cost $417,600 $446,400

Contribution $1,044,000 $1,116,000

Minus Fixed Cost $378,000 $378,000

- Manufacturing cost $270,000 $270,000

- Selling and Admin cost $108,000 $108,000

Net Income $666,000 $738,000

Details 30,000 Units 31,000 Units Variance

Sales $2,700,000 $2,790,000 $90,000 F

Direct Material $540,000 $558,000 $18,000 U

Direct Labor $270,000 $279,000 $9,000 U

Overhead cost $378,000 $390,600 $12,000 U

Selling and Admin $432,000 $446,400 $14,400 U

Total $36,600 F

Explanation:

4 0

3 years ago