Why is it important for the business owner to<br> understand the market they are selling to?

The crunchy granola company is a diversified food company that specializes in all natural foods. the company has three operating

gogolik [260]

Based on the given entries, the condensed divisional income statements are:

Cereal Division Snack Cake Retail Bakeries

Sales 25,000,000 8,000,000 9,750,000

Cost of Goods <u> (16,670,000) (5,575,000) (6,795,000)</u>

Sold

Gross Profit 8,330,000 2,425,000 2,955,000

Operating Expenses <u> (7,330,000) (1,945,000) (2,272,500)</u>

Operating income <u> (1,000,000) (480,000) (682,500) </u>

The profit margins, Investment turnover, and ROI.

Cereal Division Snack Cake Retail Bakeries

Profit Margin 4 6 7

Investment Turnover 2.5 2 12

ROI 7 1.5 10.5

The management should go with Snack Cake as it has the highest Profit Margin.

<h3>What are the matrics and ratios for Crunchy Granola Company?</h3>

The condensed income statements will show all the divisions and their operating incomes in one statement as shown above.

The profit margin can be found as:

= Operating income / Sales x 100

The Return on Investment (ROI) is:

= Operating income / Invested assets x 100

Investment turnover can be found as:

= Sales / Invested assets x 100

Find out more on Return on Investment at brainly.com/question/26445145.

8 0

2 years ago

Mega Corporation has developed a strategic plan that calls for an emphasis on appealing to a younger demographic. If it decided

aliya0001 [1]

Answer:

Such changes would require an understanding of:

a) intellectual property law

Explanation:

Intellectual property can be defined as non-physical property of the mind or the intellect. They are intangible assets of the intellect that can be protected by law. The law that guides the creation, usage and enforcement of intellectual property rights is know as intellectual property law. They majorly involve inventions of the mind such as; designs and artistic works. The laws were made to provide incentive to the inventors and creators of intellectual property to build creative inventions that benefits the society but also ensuring that they gain profits and acknowledgement for their work.

As enshrined in Article I, Section 8 of the U.S. Constitution, congress is given exclusive authority to grant inventors and creators rights to their inventions. The two major agencies that administer intellectual property laws are; the U.S. Patent and Trademark Office, and the U.S. Copyright Office.

In the context above where Mega Corporation wants to change it's logo and trademark, they need an understanding of intellectual property law since corporate logos and trademarks are subject to intellectual property law.

6 0

3 years ago

The manager of a supermarket would like to know which of several quality problems to address a tool that would be most helpful w

Daniel [21]

The manager of a supermarket would like to know which of several quality problems to address a tool that would be most helpful would be a Pareto chart.

A Pareto chart is a form of a graph with both bars and a line graph, where the bars reflect individual values in descending order and the line the cumulative total. The chart is called after the Pareto principle, which takes its name from renowned Italian economist Vilfredo Pareto.

The Pareto chart's goal is to draw attention to the most significant among a group of (usually several) components. Pareto charts can be used in quality control to identify the flaws that need to be fixed first in order to see the biggest overall improvement.

It frequently reflects the most frequent causes of faults, the most prevalent kind of defect, the most common causes of customer complaints, and so forth. For each bar in the Pareto chart, Wilkinson (2006) developed a method that generates statistically based acceptability limits (akin to confidence intervals).

Learn more about the Pareto chart here:

brainly.com/question/13274440

#SPJ4

7 0

1 year ago

Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports

Rudiy27

Answer:

37.00%

Explanation:

The computation of the weighted average contribution margin ratio is shown below:

Particulars Sporting Goods Sports Gear Total

Contribution Margin Ratio 30% 50%

Sales Mix - Weights 65% 35%

Weighted Contribution Margin 19.50% 17.50% 37.00%

We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come

7 0

3 years ago

In order to encourage people to spend more money and stimulate the economy the government slashed the individual income tax rate

natali 33 [55]

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4 0

3 years ago

Why is it important for the business owner to understand the market they are selling to?