Answer:
C) 12.5%
Explanation:
The computation of the return on equity is shown below
Return on equity is
= net income ÷ equity
where,
equity is
= Total assets - total liabilities
= $500,000 - $100,000
= $400,000
Now the return on equity is
= $50,000 ÷ $400,000
= 12.50%
Hence, the return on equity is 12.50%
Therefore the corredct option is c.
Answer:
Cerry Blossom Product Inc
the break-even quantity = Fixed cost / contribution margin
contribution margin on the other hand is sales price minus variable cost
compoutation of contribution margin
DVD Equipment
$ $
Price 11 15
variable cost <u> 4 </u> <u> 7</u>
<u> 7 </u> <u> 8</u>
unit sold 18,000 4,500
sales ratio 4 1
weigheted average contribution margin = ($7*4) + ($8*1)
4 + 1
= $36/5
= $7.2
Overall break-even quantity = $84,000/$7.2
= 11,667
Break-even unit :
DVD = (4 * 11,667)/ 5
= 9,334units
Equipment sets = ( 1 * 11,667)/5
= 2,333 units
Explanation:
this question is on multi- products.
The overall break-even quantity of the firm will be computed first using the weighted average contribution margin of the firm and common fixed cost.
The break-even quantity will later be divided between the two product based on their sales ratio.
Answer: Expectancy Theory
Explanation: Expectancy theory formulates that a person will conduct oneself in a specific manner as he or she is motivated to choose a particular behavior over others because of what they regard the outcome of the behavior that is selected as likely to be.
Here, the management of McCloud Corp utilizes the expectancy theory to make the workers develop the quality of their work and put in extra effort to the work . However, this theory is aimed at giving rewards to workers who earned them and also chose to get rewarded as they are chosen by their performance. The inspiration for the behavior preference is deduced by how appealing the result is.
D. Assessment and plan data in the progress notes. Because the assistant is not that knowledgeable yet.
