Answer:
Yes.
The loyal customers will also be attracted to the new private label cookie, just as budget shoppers will be attracted.
Explanation:
The proposal, if accepted, may jeopardize the company's normal cookie sales in the supermarket. The little reduction in the quality of the cookie (which cannot translate to significant production cost reduction) may be perceived as much by some loyal consumers of the normal cookie. However, the new private label cookie will easily attract budget shoppers, who value the reduced price of $1.99 instead of the normal price of $2.50. Accepting this proposal should depend on the continued patronage of the normal cookie and the sales number of the private label cookie.
Answer:
3.20
Explanation:
The computation of the asset turnover ratio is shown below:
Total asset turnover = (Net Sales revenue ÷ Average Total assets)
= ($16,320,000 ÷ $5,100,000)
= 3.20
It shows a ratio between the net sales revenue and the average total assets.
All other information which is given is not relevant. Hence, ignored it
Answer and Explanation:
The correct journal entry to record the impact of this tax rate change is shown Below:
Income Tax Expense $5,000
To Deferred Tax Assets $5,000
(being the income tax expense is recorded)
here the income tax expense is debited as it increased the expense and credited the deferred tax assets
So, the same should be considered
Answer:Debt equity ratio= 0.92
Explanation:
Debt equity ratio is a company's liquidity ratio that compares its total debt to total equity showing how the proportion of the finance of the company proceeds from its creditors and investors.
its formulae is given by
Debt equity ratio= Total liabilities /Total shareholder's equity
= Debt/ total asset - debt
let the total asset = 100% = 1
Therefore,
Debt equity ratio=Debt/ total asset - debt
= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231
Answer:
$8,000
Explanation:
Given that
Profit = $1,200
Cost = 85% of sales
Profit = 15%
We know that
Sales = Cost + Profit
= 85% + 15%
= 100%
So sales percentage is 100%
Now we use the unitary method to find out the extra sales which would be
= Profit × sales percentage ÷ profit percentage
= $1,200 × 100% ÷ 15%
= $8,000
