It can go wrong and you won’t make your money
Answer:
Residua income = $80,000
Explanation:
<em>Residual income is the excess of the controllable profit over the opportunity cost of capital invested. </em>
<em>It is used to evaluate the financial performance of a division or department.
</em>
<em>The a positive residual value indicate a good performance, hence the higher the residual value the better
</em>
It is computed as follows:
Residual income = Controllable profit - (cost of capital× operating assets)
Controllable profit = 560,000,
Interest on capital = × 12% × 4,000,000 = 480,000
Residual income = 560,000 - 480,000= 80,000
Residua income = $80,000
Answer:
The answer is <u>$24</u>
Explanation:
Manufacturing overhead costs are expenses that result from the manufacturing of the organization’s products. The predetermined overhead rate for machine hours is calculated by dividing the estimated manufacturing overhead cost total by the estimated number of machine hours.
Manufacturing overhead rate = $489,600 / 20,400 = <u>$24</u>
Answer: E. Coping with changes in demand.
Explanation: The partnership of Kruger Co. with Alibaba is a direct consequence of the emerging trend in retail markets that favors Asian products. By this partnership, Alibaba Group's massive customer base (mostly online) is open to Kruger wherein it could scale and test the sale of its own brand groceries. The e-commerce plan is strategic, to redefine the grocery customer experience, creating customer value and driving top-line growth via alternative revenue streams.
The answer to this question is" A portfolio of with a high percentage of stocks.
Stock is considered the most volatile type of investments and considered to has high risk& high return.
The price of stock could change within days and this could either give a really large profit for the shareholders or make shareholders lose their capital badly when the market price of the stock fall down.
This type of investment is perfect for those who are not afraid of risk.