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3 years ago

ABC Company's return on asset is greater than XYZ Company's return on asset, but XYZ

Business

1 answer:

fomenos3 years ago

4 0

Answer:

d) XYZ company is highly debt financed relative to ABC

Explanation:

The difference between the return on equity ( ROE) and return on assets (ROA) is the structure of capital financing.

ROE is calculated as follows

ROE = net income / shareholders equity. Shareholders' equity is the difference between a business's assets and liabilities. I.e., shareholders equity = Assets - Liabilities.

ROE considers the debts of the business. If a company is highly indebted, its ROE will be high.

ROA is calculated: ROA = net income/ total assets. Total assets is the sum of shareholders' equity plus liabilities. i.e., total assets = assets + liabilities.

The difference is the two ratios is the denominator. If the denominator is small, the ratio will be bigger. A business with a high level of debt will have reduced equity( assets- liabilities).

XYZ Company's return on equity is greater than ABC's, implying that XYZ has more debts than ABC.

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Christopher likes cupcakes (C) and muffins (M). His preferences can be represented by the utility function U(C, M) = C0.5M0.5. H

Tatiana [17]

Answer:

16 cupcakes

Explanation:

U(C, M) = C⁰°⁵ x M⁰°⁵ = √C x √M

total utility obtained by eating 16 cupcakes and 4 muffins = √16 x √4 = 4 + 2 = 6

since the bakery is out of muffins, then utility function = √C x √2 = √C x 1.4142

√C x 1.4142 = 6

√C = 6 / 1.4142 = 4.2426

C = 4.2426² = 18

since there were 2 cupcakes left, Christopher must purchase 18 - 2 = 16 cupcakes

8 0

3 years ago

Suppose dynascan, makers of led-based digital signage, found that women could assemble more signage parts than men during a shif

tangare [24]

The correct answer is the second option (there is a difference in performance). The Equal Pay Act of 1963 was passed to ensure that employers would not discriminate based on gender. This means that employers cannot pay men more than women, just for being men (and vice versa). Essentially, the law ensures equal pay for equal work. However, it also notes that equal pay does not apply if the payment system correlates to the quantity of work. Since the women in this example are producing more output, then it is legal for them to be paid more for their larger quantity (and not simply because they are women).

5 0

3 years ago

is the degree to which both businesses and customers believe that the pricing is reasonable. a. customer-led pricing b. fair pri

tester [92]

Answer:

Explanation:

no because arr jf does noot match it

4 0

3 years ago

5. Explain why your answers to question 4 above do or don't make you a good fit for entrepreneurship. (3-5 sentences. 2.5 points

Olenka [21]

Answer:

Entrepreneurship requires a risk taking ability as the business will be managed by an individual, Hence, not fit.

Explanation:

Entrepreneurship is an economic activity that helps in minimises risk within the organisation. there's an individual who bear risk of the business known as entrepreneur.

He's an initiative person as a result of he takes initiative for his or her work. Entrepreneurship acts as organisation as a result of it conjointly helps in dividing the task in numerous tiny activities.

6 0

2 years ago

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary

mixas84 [53]

Answer:

Sales mix

Portable grills = 20000/75000 = 4/15 or 26.67%

Stationary grills = 50000/75000 = 2/3 or 66.67%

Smokers = 5000/75000 = 1/15 or 6.67%

Break even in units

Overall = 2128500 / 66 = 32250 units

Portable = 32250 * 4/15 = 8600

Stationary = 32250 * 2/3 = 21500

Smokers = 32250 * 1/15 = 2150

Explanation:

The sales mix is the proportion of sales in units that each product holds in the in relation to the total overall sales in units of all products. The sales mix is calculated as follows,

Sales mix proportion of Product A = Sales in units Product A/Total number of sales in units of all products

The total number of sales in units of all products is,

Total sales in units = 20000 + 50000 + 5000 = 75000 units

Sales mix

Portable grills = 20000/75000 = 4/15 or 26.67%

Stationary grills = 50000/75000 = 2/3 or 66.67%

Smokers = 5000/75000 = 1/15 or 6.67%

We will compute the overall break even point in units in then divide it according to the sales mix to calculate the break even in units of each product.

To calculate the overall break even in units, we need to determine the weighted average contribution per unit.

Weighted average contribution per unit = 4/15 * (90 - 45) + 2/3 * (200 - 130) + 1/15 * (250 - 140)

Weighted average contribution per unit = 66

Break even in units

Overall = 2128500 / 66 = 32250 units

Portable = 32250 * 4/15 = 8600

Stationary = 32250 * 2/3 = 21500

Smokers = 32250 * 1/15 = 2150

5 0

3 years ago