Answer:
I think letter A is the right answer
Answer:
$2.51
Explanation:
Gena Manufacturing Company calculation for contribution margin unit
Using this formula
Fixed cost + Tax profit/Estimated sales units
Let plug in the formula
Where:
Fixed cost =$259,000
Tax profit=$126,034
Estimated sales units=153,400
Hence:
(259,000 + 126,034) / 153,400
=$385,034/153,400
= $2.51
Therefore the contribution margin that is required to attain the profit target will be $2.51
Answer:
<em>companies' operating performances can be compared by looking at each firm's EBIT, often referred to as</em><em> </em><em><u>operating</u></em><em><u> </u></em><em><u>income</u></em>
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<em>Operating</em><em> </em><em>income </em><em>is </em><em>the amount of profit after deduction operating expenses such as wages, depreciation, and cost of goods sold</em><em>.</em><em> </em><em>It </em><em>is </em><em>essentially</em><em> </em><em>revenue</em><em> </em><em>minus</em><em> </em><em>fixed </em><em>and </em><em>variable</em><em> </em><em>cost.</em>
Answer:
(A) Rate earned on stockholder's equity=15%
(B) Rate earned on common stockhloder's equity= 16%
Explanation:
A company reports the following profitability analysis
Net income of $375,000
Preferred dividend of $75,000
Average stockhloder's equity of $2,500,000
Average common stockhloder's equity of $1,875,000
(A) The rate earned on stockholder's equity can be calculated as follows
= Net income/Average stockholders equity
= $375,000/$2,500,000
= 0.15×100
= 15%
(B) The rate earned on common stock holder's equity can be calculated as follows
= Net income-Preferred dividend/Average common equity
= $375,000-$75,000/$1,875,000
= $300,000/$1,875,000
= 0.16×100
= 16%
Hence the rate earned on stockholder's equity and common stockhloder's equity is 15% and 16% respectively.
