Answer:
Builtrite has higher than average operating expenses
Explanation:
Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.
A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.
Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.
Answer:
Option d (increase.....................transportation) seems to be the right option.
Explanation:
- This same fourth phase throughout the past decades of U.S. regulatory requirements started throughout the late 1970s as well as focuses primarily on industrial protectionism.
- Throughout that stage of development, the current regime has focused on increasing competitive advantage throughout sectors such as construction, utility services, transshipment as well as wealth management by deactivating an amount of regulation but rather allowing companies to diversify their business processes to developing companies.
The interpretation of that same question has been characterized throughout the explanation paragraph below.
Answer:
Margin of safety = $300000
Explanation:
The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.
The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,
Margin of safety = 500000 - 200000 = $300000
Answer:
Under FIFO, the ending inventory is based on the latest units purchased.
Explanation:
First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.
On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.
