Answer:
Sweet Dreams Company's return on investment (ROI) is 28%
Explanation:
Return on Investment = Net Income / Investment
When Net Income= Sales-Operating expenses
NI = $175,000 - $161,000
=$14,000
When Operating Assets = $40,000 as it is also known as Operating Asset
Therefore Return on Investment = Net Income / Investment
ROI=$14,000 / $50,000
ROI=0.28
ROI=28%
Answer:
Option B, $2,335,000 is correct answer.
Explanation:
The value of finished goods on 1st January = $765000
The value of finished goods on 31 December = $540000
The value of the cost of goods sold for the year = $2560000
Now we have to calculate the cost of goods that are manufactured. Below is the calculation for cost of goods manufactured.
Costs of goods manufactured = $540,000 + $2,560,000 -$765,000 = $2,335,000
So, option b, $2,335,000 is correct.
Answer:
a) $22,010
b) $3,780
c) $25,790
Explanation:
a) In calculating the value of inventory still left, the total value needs to be calculated first,
= (80 freezers * $540) + $820 ( transport fees)
= 43,200 + 820
= $44,020
40 out of 80 freezers have not been sold so,
= 40/80 * 44,020
= $22,010
b) In calculating the profit, subtract the expenses from the sales
Sales = 40 * 700
= $28,000
= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation
= 28,000 - 22,010 - (28,000*0.06) - 180 - 350
= $3,780
c) The amount remitted by the consignor will be,
= Sales - commission - advertising - installation
= 28,000 - (28,000 * 0.06) - 180 - 350
= $25,790
Answer:
Alden Co.
Prediction of Future Fixed and Variable Costs, using the high-low method:
a) Determination of the Variable Cost:
7 362,000 $292,624
9 76,400 $67,000
285,600 $225,624
Variable cost per unit = $225,624/285,600 = $0.79
Fixed Costs = $76,000 - (76,400 x $0.79) = $15,644
Explanation:
Month Units Sold Total Cost
1 318,000 $155,500
2 163,000 99,250
3 263,000 203,600
4 203,000 98,000
5 288,000 199,500
6 188,000 110,000
7 362,000 292,624
8 268,000 149,750
9 76,400 67,000
10 148,000 128,625
11 92,000 92,000
12 98,000 83,650
The High-Low Method of determining costs can be relatively accurate if the highest and lowest activity levels represent the overall cost behavior of the company. Inaccurate results will be obtained when the two extreme activity levels are significantly unrepresentative of the dataset. This is exactly the case in this example. If you try to estimate fixed cost, at another activity level, you will get a different result. So the high-low method is not ideal in most cases and its results should not be relied on solely. A better method is to do a regression analysis with the dataset to obtain a more accurate result.
Answer:
The , Television, ratio indicates whether a firm will be able to meet interest obligations due on outstanding debt.