Answer:
1. a) Small Appliance Division, Average total operating assets = $6,934,000
b) Margin = 8.00%
c) Turnover = 6.00 times
d) ROI = 48.00%
2. a) Cleaning products division, Average total operating assets = $5,800,000
b) Margin = 3.00%
c) Turnover = 4.00 times
d) ROI = 12.00%
3. See explanation section.
Explanation:
See the following images to get the proper explanation. As all the answers are round figure, therefore, I did not use 16.00%, instead I used 16%. (16% is an example).
Yes, stores should be forced to obey minimum prices for a good or a company that is selling a service should as well. They should have to obey by this so that price competition isn't ongoing in the market. Larger producers can often charge a smaller amount for a product because they are producing them in high qualities. By charging less it gives them a competitive advantage over their competition in means of price. Unless the item is on clearance because a company is discontinuing stock of that item, they should have a set minimum as they do a set maximum they are allowed to charge for that item.
Answer:
$57.50
Explanation:
The computation is shown below:
Before computing the units, first we have to compute the overhead rate per hour which is shown below:
= $920,000 ÷32,000 units
= $28.75
Now the unit for assigned overhead is
= Overhead rate per hour × direct labor hours ÷ number of units
= $28.75 × 12,000 ÷ 6,000
= $28.75 × 2
= $57.50
We simply do the above calculations
Answer:
A Market economy system is essentially a system of economic democracy, the most secure foundation of citizens' freedom. According to Mises, as soon as the economic freedom of the free market system is removed, political liberties and the legal system become fake and fade away, and democracy perishes.
Answer:
a. 598 units
b. $897
c. $898
Explanation:
a. The computation of the economic order quantity is shown below:
= 598 units
b. The average inventory would equal to
= Economic order quantity ÷ 2
= 598 units ÷ 2
= 299 units
Carrying cost = average inventory × carrying cost per unit
= 299 units × $3
= $897
c. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $19,900 ÷ 598 units
= 33.28 orders
Ordering cost = Number of orders × ordering cost per order
= 33.28 orders × $27
= $898
