The owner’s return on equity is 0.111
$40,000 ÷ $360,000 = 0.111 = 11%
In finance, equity is the possession of property that could have money owed or other liabilities attached to them. equity is measured for accounting functions by using subtracting liabilities from the fee of the property.
Equity is described as “the state, first-rate or ideal of being simple, impartial and truthful.” The idea of fairness is synonymous with fairness and justice. it's far helpful to consider fairness as now not genuinely a preferred situation or a lofty value.
Equity may be calculated through subtracting liabilities from property and may be carried out to an unmarried asset, along with actual property, or to a business. as an instance, if someone owns a house worth $400,000 and owes $three hundred,000 on the loan, the difference of $a hundred,000 is fairness.
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Answer:
1. An increase in the cost of some goods such as escalating gasoline prices.
Explanation:
The standard of living refer to a comfort level, the goods, and the material, necessities and wants that are available to a person
In case when there is a decline in standard of living so it is due to the increased in price as it reduced the purchasing power of the consumer
If the price of the goods increased, then the quantity demanded decreased as per the law of demand
Therefore in the given case, the option A is correct
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Answer:
Based on the available information, the company should produce 27,900 units of couches in a month. This decision may be different if we have the product profitability information in terms of contribution of each product.
Explanation:
Couches Bed(s)
Production per machine hour (unit) 3 2
Available Capacity (Machine hour per month) 9,300 9,300
Total possible production (unit) (9,300 x 3)-Couches 27,900
Total possible production (unit) (9,300 x 2)-Bed 18,600
Based on the available information, the company should produce 27,900 units of couches since it is the production activities that produces a higher number of units in a month compared to the production of beds which can only yield 18,600 units considering the available production capacity of 9,300 machine hours per month.
The decision may be different if we have the product profitability information in terms of contribution of each product.
