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timama [110]
3 years ago
7

Marigold Corp. recorded operating data for its auto accessories division for the year. Sales $610000 Contribution margin 140000

Total direct fixed costs 90000 Average total operating assets 200000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $10000, assuming fixed costs are held constant? 75% 30% 25% 15%
Business
1 answer:
AlekseyPX3 years ago
4 0

Answer:

The ROI is 30%

Explanation:

New contribution margin = old contribution margin + increase

                                               = 140.000 + 10.000

                                               = 150.000

Net Income = contribution margin – total fixed expense

                               = 150.000 -90.000

                               = 60.000

ROI= Net income/ average operating assets

               = 60.000/200.000

               =30%

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Higher credit ratings are associated with more
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Explanation:

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7 0
3 years ago
A decrease in the price of toothpaste in a tube can lead to a decrease in the purchase of toothpaste in a pump. This means: A. T
earnstyle [38]

Answer:

C. Toothpaste in a tube and in a pump are substitute goods and the demand curve for toothpaste in a pump will shift left.

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Substitute goods are goods that can be used in place of another good.

If the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

Only changes in price of a good can lead to movement along the demand curve for that good. A decrease in the price of  toothpaste in a tube would lead to a movement downward along the demand curve

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6 0
3 years ago
The risk-free rate is 2.4% and the market expected return is 12.1%. What is the expected return of a stock that has a beta of .8
Likurg_2 [28]

Answer:Expected return on stock = 10.64%

Explanation:

According to  CAPM,Capital Asset Pricing Model CAPM,  The expected

return on stock is given as

Er = Rf +β( Mr -  Rf)

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= 0.1064

10.64%

Expected return on stock = 10.64%

5 0
3 years ago
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