A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to b
e 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and firing cost is $5 per unit. Over the next year, the sum of hiring and layoff costs will be $500 $2,500 $7,500 $7,000 $12,500
1 answer:
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Answer: 0.22
Explanation: Return on total assets is calculated by dividing net income or operating income from average total assets. It is a profitability ratio which is used by analysts to evaluate the ability of the firm to generate revenue from the given level of assets it have.
where,
= $425,000
Now,putting the values into equation :-
= 0.22