Answer: $400
Explanation:
Marginal Revenue is the revenue that is added by one additional unit.
When the product was selling at $2,000 it sold 15 units meaning the total revenue was;
= 2,000 * 15
= $30,000
When the product started selling for $1,900 it would be able to sell 16 units so the total Revenue is;
= 16 * 1,900
= $30,400
The difference in total Revenue is as a result of 1 extra unit, the 16th unit which contributed an amount of;
= 30,400 - 30,000
= $400
Find the amount of the payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. $95 comma 00095,000; money earns 66% compounded semiannually for 2 and one half2 1 2 years
Answer:
PV= $81,947.83
Explanation:
Giving the following information:
Future value= $95,000
Interest rate= 0.03
Number of periods= 5
To calculate the initial investment required to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 95,000/(1.03^5)
PV= $81,947.83
Innovations are allowing consumers to utilize gesture, touch, and voice to control computers and other devices. This is an example of a(n) __________ force that could impact many industries.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Economic
b) Technological
c) Competitive
d) Regulatory
e) Social
And the correct answer is the option B: Technological.
Explanation:
To begin with, those kind of innovations like gesture, touch and voice commands that are focused in controlling the computers in a major amount of ways so therefore the use of the device will be easier for the users, are only trying to tend to the new ways of technology that will eventually in the future dominate in the industries and will cause an increase in the production of those companies that use that kind of technology because it only makes it easier to do the tasks and therefore that the technology force mentioned will only impact in a great way in many industries.
Understanding cost behavior depends on all of the following except a.intangibles. b.relevant range. c.activity drivers. d.activity bases.
Answer:
a.intangibles.
Explanation:
The cost behavior refers to behavior in which it shows the changes in the cost if there is a change in any kind of activity
It can be based on given range, activity drivers, activity bases but not with the intangible cases as intangible refers to the asset which cannot be visible or even touched like intellectual properties i.e copyrights, patents, goodwill, etc
Hence, the correct option is a.
What program is used to determine employee's bonuses? A. time series B. exponential smoothing C. regression D. weighted moving averages
Answer:
The correct answer is: D. weighted moving averages
Explanation:
To determine employee bonuses, companies use the weighted moving average program.
This is an indicator that works using a calculation that ensures greater relevance to recent data, that is, there is a weighting factor that ensures that weights are differentiated, since it uses the multiplication of factors to differentiate weights in relation to different data.
So it is the ideal program for averaging employee bonuses.
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as Group of answer choices
The question is incomplete:
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as Group of answer choices
-Period costs
-Conversion costs
-Product costs
-Factory overhead costs
Answer:
Period costs
Explanation:
-Period costs are costs that can't be related to the production process but to a period of time and they help to earn profits and are recorded as an expense, for example, comissions and administrative expenses.
-Conversion costs is the amount of money that the company uses to transform the raw materials into finished goods.
-Product costs refer to all the costs incurred by a business to create a product.
-Factory overhead costs refers to the costs incurred by a business to create a product but that can't be related to the production process, for example, factory utilities and repairs.
According to this, the answer is that the costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as period costs because these are costs that help the company to earn money but that can't be traced to a specific stage of the production process.
Zen Inc. manufactures two types of products, the G.1 and the T.1 models. The manufacturing process consists of two principal departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work a 7-hour shift. On an average, to produce a G.1 model, Zen Inc. requires 3.5 labor hours for production and 2 labor hours for assembly. The T.1 model requires 4 labor hours for production and 1.5 labor hours in assembly. The company anticipates selling at least 1.5 times as many T.1 models as G.1 models. The company operates five days per week and makes a net profit of $130 on the G.1 model, and $150 on the T.1 model. Zen Inc. wants to determine how many of each model should be produced on a weekly basis to maximize net profit. Formulate the problem.Let the number of G.1 product produced each week be G.Let the number of T.1 product produced each week be T.Formulate the problem.MaxabG +Spell checkTsubject toSpell checkG +Spell checkT ?Spell check(production labor constraint)Spell checkG +Spell checkT ?Spell check(assembly labor constraint)T ?Spell checkG (constraint reflecting demand)G, T ?Spell check(non-negativity conditions)
Explanation:
Below is the problem formulation:
Workers:
Production dept. — 58
Assembly dept. — 25
Available work hours each day for each employee per Department:
Production dept. — 7
Assembly dept. — 7
Average Required Labor Hours per Model:
G.1— Production 3.5; Assembly 2
T.1— Production 4; Assembly 1.5
Net Profit per Model
G.1— $130
T.1— $150
Constraints:
For Labor Hours:
Production
i) 3.5G ≤ 7
ii) 4T≤ 7
Assembly
i) 2G ≤ 7
ii) 1.5T ≤ 7
Objective function: Max Z= 130G+ 150T
The cost of an asset is $ 1 comma 050 comma 000, and its residual value is $ 130 comma 000. Estimated useful life of the asset is ten years. Calculate depreciation for the second year using the doubleminusdecliningminusbalance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
Answer:
$168,000
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2 x (1/10) = 0.2
depreciation expense in year 1 = 0.2 x $1,050,000 =$210,000
book value at the beginning of year 2 = $1,050,000 - $210,000 = $840,000
depreciation expense in year 2 = 0.2 x $840,000 = $168,000
If a firm's beta was calculated as 1.35 in a regression equation, a commonly-used adjustment technique would provide an adjusted beta of Group of answer choices zero or less. between 0.0 and 1.0. between 1.0 and 1.35. greater than 1.35.
Answer: between 1.0 and 1.35
Explanation:
The Market beta is 1 and for this reason all Betas will usually equal 1 on average because they will usually move towards 1.
This means that when adjusted, the Beta will move from it's current number towards 1 so when adjusted, the Beta will be between it's current figure and 1. In this case that is 1.35 so the beta will be between 1 and 1.35.
The formula however is;
Adjusted beta = 2/3(sample beta) + 1/3(1)
= 2/3(1.35) + 1/3
= 1.23
The adjusted figure is 1.23 which is between 1 and 1.35.
1 points eBookPrintReferences Check my work Check My Work button is now disabled3Item 2Item 2 1 points Today, your dream car costs $65,500. You feel that the price of the car will increase at an annual rate 2.4 percent. If you plan to wait 4 years to buy the car, how much will it cost at that time
Answer:
$72,018.011
Explanation:
Calculation of how much will it cost at that time you plan to wait 4 years to buy the car
Using this formula
Cost =Car cost (Increase in price)^ Number of years
Let plug in the formula
Cost =$65,500(1+0.024)^4
Cost =$65,500(1.024)^4
Cost =$65,500(1.09951162)
Cost =$72,018.011
Therefore the amount that it will cost at that time you plan to wait 4 years to buy the car will be $72,018.011
After the JPR Corporation paid its employees on May 15, 2019, and recorded the corporation’s share of payroll taxes for the payroll paid that date, the firm’s general ledger showed a balance of $1,730 in the Social Security Tax Payable account, a balance of $356 in the Medicare Tax Payable account, and a balance of $1,972 in the Employee Income Tax Payable account. On May 16, 2019, the business issued a check to deposit the taxes owed in the local bank. Record this transaction in a general journal form.
Answer:
Given that the firm's general ledger showed the following:
Balance in the Social Security Tax Payable account = $1,730
Balance in the Medicare Tax Payable account = $356
Balance in the Employee Income Tax Payable account = $1,972.
Record this transaction in a general journal form:
Date: May 16, 2019
Account title: Social Security Tax Payale. Dr. $1,730
Medicare Tax Payable. Dr. $356
Employee Income Tax Payable, Dr. $1,972
Bank/Cash(Total), Cr. $4,058
If Mikael decides to go out with his friends instead of study for his biology test, what is the opportunity cost?
Answer:
Studying his biology test
Explanation:
opportunity cost refers to the cost of the forgone alternative inorder to enjoy another service
A retired married customer, age 73, has a portfolio that is invested in Blue Chip stocks and Treasury bonds that provides current income. The customer is concerned that he is paying a very high Federal and State combined income tax rate. An appropriate recommendation for this customer would be to diversify part of his portfolio into an investment in:
Answer:
The answer is Municipal bonds
Explanation:
Municipal bonds are securities(debt securities) issued by states, cities, counties etc. It is generally issued to fund capital project like construction of roads, schools etc.
Municipal bonds are generally valued for being exempt from federal, state or local taxes taxes. Hence, the reason why the customer should invest in this type of bond since the customer is being concerned about high tax that he has been paying.
Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit. What will be the profit for an investor that has $500,000 available to conduct locational arbitrage
Answer: $1639.3
Explanation:
From the question, we are informed that Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) and that bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit.
The profit for an investor that has $500,000 available to conduct locational arbitrage goes thus:
Purchasing Malaysian ringgit (MYR) from bank A at the ask rate will be:
= $500,000/$0.305
= 1,639,344.3
Selling the Malaysian ringgit (MYR) at bank B based on the ask rate will be:
= 1,639,344.3 × 0.306
= $501,639.3
The profit for an investor that has $500,000 available to conduct locational arbitrage will be:
= $501,639.3 - $500,000
= $1639.3
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:________.
Activity Cost Pool Activity Measure Activity Rate
Order size Number of direct labor-hours $ 16.85 per direct labor-hour
Customer orders Number of customer orders $ 320.00 per customer order
Product testing Number of testing hours $ 89.00 per testing hour
Selling Number of sales calls $ 1,090.00 per sales call
The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 200 direct labor-hours, 4 hours of product testing, and 2 sales calls.Required:Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?
Answer:
Overhead Report for heavy-duty trailer axles.
Order size ($ 16.85 × 200) $3,370.00
Customer orders ($ 320.00 × 1) $320.00
Product testing ($ 89.00 × 4) $356.00
Selling ( $ 1,090.00 × 2) $2,180.00
Total $6,226.00
Conclusion :
The total overhead cost assigned to the order is $6,226.00
Explanation:
ABC system allocates overheads to jobs using cost drivers.
First an Activity Center where costs accumulate is identified these can be several in our scenario we have four Activity Centers.
Then the Cost driver rate is calculated for each Activity Center. Our question has provided these.
The final step is to allocate the overheads to a particular job using the cost driver rate.
Bonds with a face amount $1,000,000, are sold at 96. The entry to record the issuance is
A. Cash 1,000,000
Premium on Bonds Payable 40,000
Bonds Payable 960,000
B. Cash 960,000
Premium on Bonds Payable 40,000
Bonds Payable 1,000,000
C. Cash 960,000
Discount on Bonds Payable 40,000
Bonds Payable 1,000,000
D. Cash 960,000
Bonds Payable 960,000
Answer:
Option C is correct
Explanation:
The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000
The discount on bonds payable=Face value-cash proceeds
The discount on bonds payable=$1,000,000-$960,000=$40,000
The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively
Suppose there are five sellers and five buyers in a rental market, each willing to buy or sell one rental unit, with values of {1000,900,800,700,600}. Assuming no transactions costs and a competitive market, what is the equilibrium price in this market
Answer: $800
Explanation;
The Equilibrium price is the price where the quantity sold by buyers equals the quantity sold by sellers.
Going by the following schedule that price would be $800 because at that point Sellers are willing to sell 3 units and Buyers are willing to buy 3 units.
Price Quantity Demanded Quantity Sold
1,000 1 5
900 2 4
800 3 3
700 4 2
600 5 1
With a looming recession in front of him, department store owner Cooper Collins decided to make a gutsy move with his high-end Eastpointe stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?A) Eastpointe recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits.B) Eastpointe stores recognized several markets that it could reach with its upscale clothing lines.C) Eastpointe positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position.D) Eastpointe knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.
Answer: A) Eastpointe recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits
Explanation:
Based on the scenarios discussed in the question above can see that Eastpointe realized that it was not competing well with the traditional higher income market.
When goods reach maturity, the sales and the profits will begin to rise at first and then drop off. Based on this realization, Eastpointe decided to change its product offering and price as it is believed that doing this will help appeal to a broader market and also lead to the increase in sales and profits
Oral Roberts Dental Supplies has annual sales of $5,625,000. 80% are on credit. The firm has $475,000 in accounts receivable. Compute the value of the average collection period.
Answer:
The answer is 38 days
Explanation:
The average collection period is the number of days it takes a company to convert its credit sales to cash
Average collection period = (account receivables/average credit sales) x 360 days
Credit sales = 80% of $5,625,000
=0.8 x $5,625,000
=$4,500,000.
Average collection period is therefore,
($475,000/$4,500,000) x 360 days
=0.10555556 x 360days
=38 days
Winkin contributes property with a value of $45,000 and Blinkin contributes property with a value of $90,000 to form Boat Corp in exchange for 25 and 50 shares of Boat, respectively. Which shareholder qualifies for Section 351 deferral of any gain or loss
Answer:
Winkin, with 25 shares of Boat Corporation, qualifies for Section 351 deferral of any gain or loss.
Explanation:
IRC Section 351 has this major requirement; it only applies to the exchange of property for voting stock in the corporation. If any shareholder involved in the transaction receives equity for something other than voting stock, e.g. services; the transaction may not qualify for tax deferral.
_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources.
Answer:
Activity based costing
Explanation:
Activity based costing is defined as a method of costing that identifies the activities involved in production in an organisation, and assign cost of the activity to the product.
It provides an objective way of assigning cost. Activities that contribute more to the production of a product will have a higher cost assigned to that product.
Manufacturing companies more accurately assign overhead cost to products.
For example machine hours can be used as a cost driver in the production process. The higher the machine hours of a process the higher the cost of that process assigned to the product.
Norred Corporation has provided the following information: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 7.50 3.70 1.60 1.50 $ 045 Cost per Period 121,500 44,500 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $120,800 B) $134,300 C) $12,800 D) $121,500
Answer:
$134,300
Explanation:
Total indirect manufacturing cost = (Unit Produced * Variable manufactured overhead) + Fixed manufacturing overhead
= (8,000 * 1.60) + 121,500
=12,800 + 121,150
=$134,300
Hencc, the total amount of indirect manufacturing cost is $134,300
A large company is accused of gender discrimination in wages. The following model has been estimated from the company's human resource information.
In (WAGE) = 1.439 + .0834 EDU + .0512 EXPER + .1932 MALE
Where WAGE is hourly wage, EDU is years of education. EXPER is years of relevant experience, and MALE indicates the employee is male How much more do men at the firm earn, on average?
a) $1.21 per hour more than females
b) 19.32% more than females
c) $19.32 per hour
d) $19, 320 more per year than females^2
Answer: b) 19.32% more than females
Explanation:
According to the model for calculating how wages are paid to employees, there is a .1932 coefficient attached to being a male employee. This means that 0.1932 (19.32% ) is added to an employees salary if they are males. This simply means that males are getting paid 19.32% more than other employees in the company which is this case are females.
Annual percentage rates (APRs) are computed using Group of answer choices None of the options are correct. best estimates of expected real costs. simple interest. either simple interest or compound interest. compound interest.
Answer: either simple interest or compound interest.
Explanation:
The annual percentage rate is the yearly interest rate that is charged to the borrowers and also paid to the investors. Annual percentage rate are computed using either simple interest or compound interest.
It should be noted that the annual percentage rate is expressed as a percentage and it represents actual annual cost of funds for a loan or an income that is earned on an investment.
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $1,430 $1,710 Temporary investments 3,120 3,840 Accounts receivable 7,150 2,610 Inventory 2,340 2,300 Accounts payable 6,500 5,100 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining?
Answer:
a. Quick ratio for current year =2.16
Quick ratio for current year =2.05
b. Improving
Explanation:
A.
To find quick ratios we need to divide current assets by current liabilities
Quick Ratio = [tex]\frac{currentasssets}{currentliabilities}[/tex]
Current assets Dec 31 current year Dec 31 previous year
Cash $1,430 $1,710
Temporary investment $3,120 $3,840
Accounts receivable $7,150 $2,610
Inventory $2,340 $2,300
Total current assets $14,040 $10,460
Current liability
Account payable $6,500 $5,100
Quick Ratio [tex]\frac{14040}{6500 }[/tex] [tex]\frac{10460}{5100}[/tex]
Quick Ratio 2.16 2.05
B.
As you can see above that in the previous year Nabors company had a quick ratio of 2.05 but it has slightly increased by 0.11 in the current year.
Answer:
Quick Ratio for the current year = 3.78
Quick Ratio for the previous year = 1.6
Explanation:
Nabors Company
Dec. 31, Current Year Dec. 31, Previous Year
Cash $1,430 $1,710
Temporary investments 3,120 3,840
Accounts receivable 7,150 2,610
Inventory 2,340 2,300
Accounts payable 6,500 5,100
Quick Ratio = Cash + Cash Equivalents + Accounts Receivables/ Accounts Payables
Quick Ratio for the current year = $ 1430+ 3120 + 7150/ 6500
= 24570/6500= 3.78
Quick Ratio for the previous year = $ 1710+ 3840 + 2610/ 5100
= 8160/5100= 1.6
A quick ratio less than 1.0 means that the current liabilities exceed the quick assets. a rule of thumb the quick ratio must have a value greater than 1.0 to conclude that the company is unlikely to face near term liquidity problems. . A value less than 1.0 raises the liquidity concerns unless the a company can generate enough cash from inventory sales or if much of its liabilities are not due until late in the next period.
Similarly a value greater than 1.0 can hide a liquidity problem if payable are due shortly and receivables are not collected late until next period.
It is improving.
___ are the criteria the firm uses to screen credit applicants in order to determine which of its customers should be offered credit and how much.
Answer:
Credit standards
Explanation:
The credit standard refers to the guidelines that are issued by the organization which analyzed whether the borrower is eligible for the loan or not. It could be checked by his or her credit score that reflects the full picture of borrower credit history i.e borrower is paying the amount of loan within in the given time or not or he is a defaulter that helps in deciding whether to offer credit or not and by how much
Choose the most accurate statement: If these projects are mutually exclusive, which project should be chosen by the CEO of the firm if the CEO’s primary objective is to maximize shareholder value? Assume the opportunity cost of capital is 10% for both projects
Answer:
Project A is the better option than Project B.
Explanation:
The NPV of the project will decide which is the option with greater value to shareholders. As we can see that the NPV of Project A at 10% cost of capital is greater than the NPV of Project B at the same 10% cost of capital. So the best option here is Project A as is more in value than project B. Hence the CEO must select Project A.
Consider the following cash flows: Year Cash Flow 2 $ 22,200 3 40,200 5 58,200 Assume an interest rate of 9 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now?
Answer:
Total FV= $134,711.26
Explanation:
Giving the following information:
Cash Flow:
Cf2= $22,200
Cf3= $40,200
Cf5= $58,200
Interest rate= 9 percent per year.
To calculate the future value, we need to use the following formula on each cash flow:
FV= PV*(1+i)^n
Cf2= 22,200*(1.09^3)= 28,749.64
Cf3= 40,200*(1.09^2)= 47,761.62
Cf5= 58,200
Total FV= $134,711.26
A financial concept known as "face value" refers to a security's nominal or monetary value as indicated by its issuer. The Total Face Value is $134,711.26.
The given data is:
Cash Flow:
Cf2= $22,200
Cf3= $40,200
Cf5= $58,200
Interest rate= 9 percent per year.
The face value will be calculated as:
FV= PV*(1+i)^n
Cf2= 22,200*(1.09^3)= 28,749.64
Cf3= 40,200*(1.09^2)= 47,761.62
Cf5= 58,200
Total FV= $134,711.26.
The initial cost of the stock, as stated on the certificate, serves as the face value for stocks. In the case of bonds, it refers to the sum that is normally paid in $1,000 increments to the holder at maturity. Bond face values are frequently referred to as "par value" or just "par."
The term "face value" refers to the nominal or monetary worth of a security; the issuing party declares the face value. A stock's face value is its initial purchase price, as stated on its certificate; a bond's face value is the amount that must be paid to the bond's issuer.
Learn more about face value here:
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"What is the four-firm concentration ratio for an industry where the top nine firms having following distribution of sales: 20%, 12%, 11%, 10%, 9%, 3%, 6%, 4%, and 3%
Answer:
53%
Explanation:
The computation of the four-firm concentration ratio for an industry is shown below:
= 20% + 12% + 11% + 10%
= 53%
We simply added the top four ratios so that the four firm concentration ratio could come
ANd, the other given percentage would be ignored as it shows the less distribution of sales as compares to the top one
Hence, the ratio is 53%
Coronado Industries developed the following data for the current year: Beginning work in process inventory $190000 Direct materials used 94000 Actual overhead 238000 Overhead applied 166000 Cost of goods manufactured 214000 Total manufacturing costs 570000 Coronado Industries's ending work in process inventory is
Answer:
Ending WIP= $546,000
Explanation:
Giving the following information:
Beginning work in process inventory $190,000
Cost of goods manufactured 214,000
Total manufacturing costs 570,000
To calculate the ending work in process, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
214,000= 190,000 + 570,000 - Ending WIP
Ending WIP= $546,000
In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net income of $807 million.
a. Compute Campbell?s asset turnover.
b. Compute Campbell?s profit margin on the sale.
c. Compute Campbell?s return on an asset using (1) asset turnover and profit margin and (2) net income.
Return on assets
(1) Assets turnover and profit margin _____%
(2) Net income _____%
Answer:
a. The asset turnover is $1.0061
b. The profit margin on the sale is 9.7605%
c. The return on an asset is 9.82%
Explanation:
a. In order to calculate the company asset turnover we would have to make the following calculation:
asset turnover=Turnover/Average operating assets
According to the given data:
Turnover=$8,268 million
Average operating assets=beginning-of-the-year total assets+nd-of-the-year total assets
Average operating assets=$8,113 million+$8,323 million
Average operating assets=$8,218 million
Therefore, asset turnover=$8,268 million/$8,218 million
asset turnover=$1.0061
b. In order to calculate the company profit margin on the sale we would have to make the following calculation:
profit margin on the sale=Net income*100/sales
Net income=$807 million
Therefore, profit margin on the sale=$807 million*100/$8,268 million
profit margin on the sale=9.7605%
c. In order to calculate the company return on an asset we would have to make the following calculation:
return on an asset=Assets turnover*Profit margin
return on an asset=$1.0061*9.7605%
return on an asset=9.82%