Answer:c. 12.0%
Explanation:Return on Investment (ROI) is a measure used by firms in order to determine how effective an investment is in terms of gains from its proceeds when compared to the amount invested .
Given
Yellowday Energy margin as 3%
turnover= 4.0 and sales as $50million,
we can calculate the ROI,Return on Investment , as the Profit margin multiplied by turnover
ROI = Profit Margin x Turnover
= 3% x 4.0
= 0.03 x 4.0
=0.12
0.12 x 100
= 12.0%
Answer:
C. Significant amounts of indirect costs are allocated using only one or two cost pools.
D. All or most indirect costs are identified as output unit-level costs.
E. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
F. Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
Explanation:
ABC (activity based costs) method focuses on individual activities as the main cost objects. After it determines the cost of individual activities, it uses them as the basis for assigning costs to products and services. ABC method allocates overhead costs based on the main cost objects.
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Answer:
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000
Explanation:
Giving the following information:
Wide Open Industries Inc. has fixed costs of $475,000.
AA
Selling Price= $145
Variable Cost= $105
Contribution Margin per Unit= $40
BB
Selling Price= 110
Variable Cost= 75
Contribution Margin per Unit= 35
The sales mix for products AA and BB is 60% and 40%, respectively.
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
weighted average selling price= 145*0.6 + 110*0.4= 131
weighted average variable expense= 105*0.6 + 75*0.4= 93
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000