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yanalaym [24]
3 years ago
13

Gabbe Industries is a division of a major corporation. Last year the division had total sales of $23,826,400, net operating inco

me of $2,835,342, and average operating assets of $9,164,000. The company's minimum required rate of return is 19%.
Business
1 answer:
pashok25 [27]3 years ago
5 0

Answer:

a. Division margin:

= Net operating income / Total sales

= 2,835,342 / 23,826,400

= 11.9%

b. Division turnover:

= Sales / Total assets

= 23,826,400 / 9,164,000

= 2.6 times

c. Division ROI:

= Net operating income / Total assets

= 2,835,342 / 9,164,000

= 30.94%

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ivanzaharov [21]

Answer:

$721,000 is correct

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A company has a process that results in 34000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
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Answer:

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

Explanation:

For calculation, following things need to be considered which is shown below:

1. Product A process costing = Pounds × Per pound price

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2. Product A costing after selling = Pounds × sale price per pound

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3. Difference of costing :

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After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

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Answer:

B. $57

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The computation of the opportunity cost of the theater shown below:

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To find the opportunity cost we considered the total earnings and the cost of the theater tickets so that the accurate cost of the theater could come.

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