Answer:
Operating profit margin = operating profits ÷ turnover
= 405000 ÷ 4,050,000
= 0.1 = 10%
ROI = Net operating Income/ Average Operating assets
= 405,000 ÷ 1620,000
= 0.25 = 25%
(note: Average operating assets = ( opening operating assets + closing operating assets ) ÷ 2 )
Turnover = sales/ average operating assets
= 4,050,000/ 1620,000
= 2.5
Residual income
minimum required return = minimum required rate of return × average operating assets
= 15% × 1620000
= 243000
Residual income = net operating income - minimum required return
= 162000
These include any resource needed for the creation of a good or service. The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.
Answer:
John's estimated cost of owning and driving the car for three years is $17,500
Explanation:
The computation of the estimated cost for the three years is shown below:
= Purchase cost of Toyota + (annual cost of maintenance, registration, insurance, and gas × Number of years) - selling cost or scrap value
= $20,000 + ($1,500 × 3) - $10,000
= $20,000 + $7,500 - $10,000
= $27,500 - $10,000
= $17,500
The selling cost should be deducted so that accurate value can come and the annual cost is given for one year only but we have to compute for the three years so we multiply it by three years.
Excise, it's an extra tax which makes you pay more
Answer:
$2,925 Unfavorable
Explanation:
The computation of direct labor rate variance is shown below:-
Actual rate = Direct labor cost ÷ Actual direct labor hours
= $5,250 ÷ 150
= 35
Direct labor rate variance = (Selling rate - Actual rate) × Actual hours rate
= ($15.50 - 35) × 150
= -$19.5 × 150
= $2,925 Unfavorable
Therefore for computing the direct labor rate variance we simply applied the above formula.