1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DIA [1.3K]
3 years ago
5

For a recent year L’Oreal reported operating profit of €3,385 (in millions) for its Cosmetics division. Total assets were €12,88

8 (in millions) at the beginning of the year and €13,099 (in millions) at the end of the year. Compute return on investment for the year. (Enter answer in millions and Round your answers to nearest whole number)
Business
1 answer:
aivan3 [116]3 years ago
8 0

Answer:

The correct answer is 26.05%.

Explanation:

According to the scenario, the given data are as follows:

Beginning Assets = 12,888 ( million)

Ending Assets = 13,099 (million)

Operating profit = 3,385 (million)

So, Average Assets for the year = (12,888 + 13,099) ÷ 2 = 12,993.5 (million)

So, we can calculate the return on investment by using following formula:

Return on investment = Operating profit ÷ Average assets for the year

By putting the value, we get

Return on investment = 3,385 ÷ 12,993.5 (million)

= 0.2605 or 26.05%

You might be interested in
Which of the following is not an example of IFRS simplified for SMEs?
Ludmilka [50]

Answer:

b. all development cost are expensed as incurred

6 0
3 years ago
If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,00
fiasKO [112]

Answer:

Option (a) is correct.

Explanation:

Here, shoes are normal goods as there is a positive relationship between the income level of the consumer and the quantity demanded for shoes. It can be seen that as the income of the consumer increases from $19,000 to $21,000 then as a result the quantity of pairs of shoes demanded increases from 9 to 11 pairs. Normal goods are generally have positive income elasticity of demand.

Therefore, the shoes are normal goods in this case.

7 0
2 years ago
An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts a
cupoosta [38]

Answer:

a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270

b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300

Explanation:

a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.

Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:

Now, profit foregone is calculated as per the table below:

Figures in $

Particulars Revenue Cost Profit

Incline        1400          600 800

Bridge         1500 950  550

Campground 2700 1200 1500

Total        5600 2750 2850

Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.

Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone

= 700*5 + 2850 = $6,350

Hence, minimum transfer price (per home) should be = 6350/5 = $1,270

b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.

4 0
2 years ago
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upco
inessss [21]

Answer:

<u>Over Applied Overhead      = $ 4000</u>

Actual Manufacturing Overhead = $45,000

Manufacturing Overhead Applied = $ 49,000

Explanation:

                                          Job 101        Job 102        Job 103

Total Direct materials      $ 19,200     $ 14,400       $ 9,600       $ 43,200

Direct labor                    $ 28,800       $ 11,200        $ 9,600      $ 49,600

Machine hours              1,000 hrs        4,000 hrs      2,000 hrs   7,000 hours

<u>Manufacturing overhead   $ 7000       $ 28,000      14,000 </u>

<u>Total                                $ 55,000         53,600        33,200</u>

Actual overhead costs recorded during the first month of operations totaled $45,000.

<u>Journal Entries </u>

<u>Sr. No                    Particulars                 Debit                   Credit</u>

Job 102              Finished Goods           53,600

                           Work In Process                                     53,600

A journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.

Job 101                Sales                         60,000

                        Cost Of Goods Sold                              60,000

Journal entries to recognize the sales revenue and cost of goods sold for Job 101.

Job 101              Cost of Goods Sold        55,000

                          Finished Goods Inventory                  55,000

Manufacturing Overhead Applied =   $ 7000 + $ 28,000+14,000 = $ 49,000

Job 101 = 1000/60,000 * $ 420,000= $ 7000

Job 102 = 4000/60,000 * $ 420,000= $ 28000

Job 103 = 2000/60,000 * $ 420,000= $ 14000

Actual Manufacturing Overhead = $45,000

<u>Over Applied Overhead      = $ 4000</u>

                                   

      Manufacturing Overhead  Accounts $ 4000  debit                  

              Cost of Goods Sold          $ 4000 Credit

Entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.

(Entry to reduce the amount of Over applied Overhead)                                

                         

6 0
3 years ago
Which of the following is the number one method of financing for most new businesses?
Sergeeva-Olga [200]
Previous business sales
8 0
2 years ago
Read 2 more answers
Other questions:
  • Elasticity is _______
    10·1 answer
  • A useful guideline in designing policies and operating procedures that facilitate good strategy execution is ________.
    13·1 answer
  • "​generally, _________ is a​ company's most expensive promotional tool."
    13·1 answer
  • Choose all that apply. Adrianna will be a college freshman soon and she is struggling to make a career choice. Which activities
    14·2 answers
  • Assume a companys income statefor year 9 is as follows:
    5·1 answer
  • If the government decides to adopt a carbon tax, the price of goods whose production generates carbon emissions will __________
    10·1 answer
  • The life span of a record that follows a set of phases from creation to final disposition is called the ___________.
    7·1 answer
  • Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
    5·1 answer
  • An advertising campaign: a. may contain a wide variety of themes and slogans. b. extends for a defined period of time. c. acts a
    12·1 answer
  • Which type of interest can earn more money over the long term?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!