Answer:
Selling price= $172.8
Explanation:
Giving the following information:
Manufacturing costs to be $ 240.00 per air conditioner
Consisting of 60% variable costs and 40% fixed costs.
Selling price= 20% markup to full costs.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:
Unitary cost= 240*0.6= $144
Selling price= 144*1.2= $172.8
This is an annual report.
An annual report is a report that is given or done yearly for the financial condition or progress of an organization.
Answer:
The company's net operating income for the year was: $60,000
Explanation:
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
Investment Turnover Ratio = Net Sales/(Stockholders' Equity + Debt)
or
Investment Turnover Ratio = Net Sales/Total investment
Total investment = Net Sales/Investment Turnover Ratio
The company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%.
Net Income = ROI x Total investment = ROI x Net Sales/Investment Turnover Ratio = 36% x $400,000/2.4 = $60,000
