Given:
Sales Revenue = 150,000
ROI = 12%
turnover = 3
ROI = Margin * Turnover Margin
12% = Margin * 3
12%/3 = Margin
4% = Margin
Margin = Net Operating Income / Sales
4% = Net Operating Income / 150,000
4% * 150,000 = Net Operating Income
6,000 = Net Operating Income
<em>Profit</em><em> </em>is what is left after a firm plays its variable costs and fixed costs.
Answer:
c. 23,500
Explanation:
The formula for determining target sales volume is shown below:
target sales volume=fixed costs+ target net income before tax/contribution margin per unit
fixed costs=$140,000
target net income before tax=$36,000/(1-25%)=$48000
contribution margin per unit=selling price-variable cost=$25-$17=$8
target sales volume=($140,000+$48000
)/$8
target sales volume=$188,000/$8
target sales volume=23500
Answer:Quality control
Explanation:
The act of supervising all the jobs to achieve the desired excellence is termed as quality control. In general, its purpose is to identify the defects in a lot by checking a few items.
Every company device a method to identify the defects and thus eliminate the defects. Quality control team do not correct the mistake instead they notify another team to correct the defect.
Answer:
Correct option is (c)
Explanation:
When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.
Payment of dividend also decreases cash from balance sheet.
When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.
When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.
Purchase of new equipment will reduce cash balance.
So issue of new shares increase cash balance in balance sheet.
