Answer:
Profit margin = 9.74%
Explanation:
We know,
Profit Margin = (Net income after tax/Net sales) x 100
Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.
Given,
Year 2,
Net Sales = $484,000
Net income after tax = $47,150
Therefore,
Profit Margin = 
Profit Margin = 9.74%
Hence, company is performing financially well.
Answer:
Economies of scale
Explanation:
As the production increases, the cost per unit of a single product type decreases.
Answer: 0.000903
Explanation:
Expected return is the sum of the probability that the other returns will happen.
= (13% * 83%) + (5% * 17%)
= 10.79 % + 0.85%
= 11.64%
Variance = ((Return during boom - Expected return)²*probability of boom) + ((Return during recession - Expected Return)²*probability of recession)
Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)
= 0.0001535168 + 0.0007495232
= 0.000903
Answer:
The total amount of administrative cost to the Accounting Department is $ 14,900.
Explanation:
In order to calculate the total amount of administrative cost to the Accounting Department, first we need to calculate the Utilization Ratio of the particulars, using the following formua:
Utilization Ratio=(Total amount particular/Utilised by accounting department)
Hence, the Utilization Ratio of Administration costs
=(50/280)
=0.178
the Utilization Ratio of Maintenance fee
=(12,000/36,000)=0.33
the Utilization Ratio of Utilities=(12,000/36,000)=0.33
Therefore, the total amount of administrative cost to the Accounting Department=(0.178×$50,000)+(0.33×$12,000)+(0.33×$6,000)
=$8,900+$4,000+$2,000
=$14,900
Answer:
an indeterminate effect on equilibrium quantity and a fall in equilibrium price.
Explanation:
A normal good is a good whose demand increases when income increases and falls when income falls.
If income falls and the good is a normal good, demand would fall. This would lead to a fall in price and quantity.
If cost of input falls, the cost of production would fall and supply would increase. This would lead to an increase in quantity and a fall in price.
The combined effect would an indeterminate effect on equilibrium quantity and a fall in equilibrium price.
I hope my answer helps you
