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Sloan [31]
3 years ago
14

When a supplier offers a lower price for a larger quantity, the buyer should: _________

Business
1 answer:
Murljashka [212]3 years ago
4 0

Answer:

The correct option is (c)

Explanation:

Return on investment measures the attractiveness  with respect to an investment. It evaluates the efficiency of a particular investment as compared to other investment opportunities.

It is computed by subtracting cost of investment from current value and divide the result by the cost.

In this case, buyer should estimate the return on investment in purchasing larger quantity to get discount and compare it with other investment opportunities. If it offers higher returns, then the buyer should go for this.

You might be interested in
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2021, but the expense is not yet recognized for accounti
Goryan [66]

Answer:

$42,000

Explanation:

Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.

Insurance expense of $210,000

Tax rate of 20%

( $210,000 × .20 )

=$42,000

Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000

6 0
4 years ago
Wisconsin Company uses the periodic inventory system. Sales for 2016 were $1,880,000 while operating expenses were $700,000. Beg
stiks02 [169]

Answer: $360,000

Explanation:

To solve the question, we needed to calculate the cost of goods sold first. This will be:

= Beginning Inventory + Purchases - Ending Inventory

= $280,000 + ($720,000 - $60,000) + $240,000

= $280,000 + $780,000 + $240,000

= $820,000

The net income or net loss will then be:

Sales = $1,880,000

Less: Cost of goods sold = $820,000

Gross profit = $1,060,000

Less: Operating expenses = $700,000

Net income = $360,000

The net income is $360,000

4 0
4 years ago
jphone, inc., has an equity multiplier of 1.41, total asset turnover of 1.7, and a profit margin of 8 percent.
lukranit [14]

ROE = 15.40 is the right answer.

ROE = (profit margin x asset turnover x equity multiplier)

ROE = (7 x 1.63 x 1.35)

ROE = 15.40

<h3>What is Return on Equity?</h3>

The efficiency of a company's management team in managing the capital that shareholders have invested in it can be gauged by investors using the ratio known as return on equity (ROE). In other words, return on equity evaluates how profitable a company is in comparison to the equity held by stockholders. A company's management is more effective at generating revenue and growth from its equity financing the higher the ROE.

Using ROE, one may assess a business's position in relation to the market and its rivals.

The method is especially useful when comparing businesses in the same industry since it can be used to evaluate almost any company with a focus more on tangible than intangible assets and to identify which businesses are more financially efficient.

Shareholder equity divided by net income is referred to as the return on equity (ROE).

Before common-stock dividends are paid, the bottom line profit shown on an organization's income statement is known as net income. An alternative to net income is free cash flow (FCF), which is another measure of profitability.

Thus, ROE is a financial measuring tool for any business.

For more information on ROE, refer to the given link:

brainly.com/question/27821130

#SPJ4

8 0
1 year ago
Assuming the average person works 50 weeks per year, median earnings of a college graduate are $56,850 per year compared to $33,
Drupady [299]

Answer:

a. over 100,000

b. is more than 8 times

Explanation:

a.

Cost of four-year bachelor degree = Actual cost + opportunity cost

And

Actual cost = amount spent

opportunity cost = amount lost in not doing job just after high school  

So ,

opportunity cost would be the 4 year salary of a high school graduate.

∴

Opportunity cost = 4 * yearly income of high school graduate

                             = $ 4 * 33900

                             = $ 135,600

Actual cost = 4 * yearly cost to attend college

                    = $ 4 * 25,290

                    = $ 101,160

As,

Total cost =  Actual cost + opportunity cost

                 = $ 101,160 + 135,600

                = $ 236,760

b.

Lifetime gain in pursuing bachelor degree over high school = life time earning of bachelor - lifetime earning of high school graduate

= 2,444,500 - 1,593,300 = 851,200 $

Hence,

the expenses of obtaining a bachelor degree is worth it because the increase in lifeime earning exceeds cost. [ cost = 236,760 $ , gain = 851,200 $ ]

So,

The expense of obtaining a bachelor's degree worth it because the increase in lifetime earnings is more than 8 times the cost

5 0
3 years ago
Spontaneous funds are generally defined as follows: Select one:
MA_775_DIABLO [31]

Answer:

The correct answer is letter "C": Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include immediate increases in accounts payable, accrued wages, and accrued taxes.

Explanation:

Spontaneous funds are all those incomes that a company receives without expecting them. The money can be received from different internal and external sources but they imply obligations. It means taxes are likely to be deducted after reporting the income in the firm's accounting books.

5 0
4 years ago
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