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rosijanka [135]
3 years ago
12

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

s our operating profit margin higher than the industry standard and our net profit margin lower than the industry standard?
a. Builtrite has lower than average operating expenses
b. Builtrite has higher than average operating expenses
c. Builtrite has lower than average interest expense
d. Builtrite has higher than average interest expense
Business
1 answer:
Jet001 [13]3 years ago
5 0

Answer:

B.) Builtrite has higher than average operating expenses

Explanation:

When we subtract the cost of goods sold from the net sales, what we have is called gross profit. A high gross profit could be that products are being sold at a higher price

If your gross profit margin is higher than industrial average you will have more chances of generating net profit. That is if your expenses are confined to industry average levels.

Operating profit is known as pretax profit. To get this, you subtract operating expenses from gross profit.

Its margin is = to operating income divided by the total revenue. A low operating margin even in the presence of higher gross profit is due to the fact that the company is not able to control its operating expenses or simply out, they are getting higher operating expenses when compared to industry.

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Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas
iris [78.8K]

Answer:

(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.

-<u> Increase in exports while no change in imports</u>.

(b). The Sony pension fund buys a bond from the U.S. Treasury.

- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.

(c). An American investor buys a controlling share in a South Korean electronics firm.

- <u>Increase in Net Capital outflow for the U.S</u>.

Explanation:

Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.

In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.

7 0
3 years ago
The general fund of Battle Creek budgeted a transfer to its capital projects fund for $110,000 to be used in operations during t
dybincka [34]

Answer: The answer is Other Financing Uses and Sources.

Explanation: The other financing uses and sources are usually under Operating statement account in government accounting and budgeting.

Other financing uses and sources encompass limited number of special transactions that include non-operating revenue and expenditures. Other items that are included in this financial reporting line are proceeds from debt transactions, operating transfers, sale of government assets. While other financing uses are transfers into a fund and proceeds of debts issue and sale of government asset, other financing sources show the transfer from one fund to another.

6 0
3 years ago
Altruon Inc., a manufacturing company, has production facilities in three different geographical locations. Production managers
iris [78.8K]

Answer: (D) Synchronous

Explanation:

 The synchronous communication is one of the type of real-time interaction such as phone and face-to-face communication between the two people.

The main benefit of the asynchronous communication is that it allow transmission of message and information between the sender and the receiver without any external type in the clock signal.

In the synchronous communication, the transmission of data or information are transmitted and received at the similar time.

Therefore, Option (D) is correct.

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Answer:

Dealers, Brokers

Explanation:

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3 years ago
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Body Language is communicate by movement or position, particularly facial expressions, gestures and the relative positions of a speaker and listener.
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