Which of these career positions typically advise customers of the amount of money they need to support their families in case of death or to protect themselves in case of an emergency with their homes or cars?

bank teller

insurance agent

financial manager

mortgage broker

Answers

Answer 1

Answer:

C. financial manager

Explanation:

finacial manager usually give advises to customers  on amount of money incase of a family passed way. This is why financial manager is the best option.

Answer 2

Answer:

B

Explanation:


Related Questions

The cafeteria of a prominent university in Carson, California hires students to assist in its three shifts of operations: breakfast, lunch, and dinner. In order to provide good customer service, the cafeteria has a policy that the number of students hired for the lunch shift must exactly equal (no more and no less) to the combined total number of students hired for the other two (that is, breakfast AND dinner) shifts. Based on these information, if Bis the number of students hired for the breakfast shift, L is the number of students hired for the lunch shift, and is the number of students hired for the dinner shift, then the constraint used in a Linear Programming (LP) problem to describe this situation is :________
A. B = L + D
B. L - B + D
C. D - B + L
D. Not enough information given to answer this question
E. None of the above please continue on the next page

Answers

Answer:

B. L - B + D

Explanation:

There are three different shifts of operation, Lunch, breakfast and dinner. The liner programming constraint is that lunch total must be equal to the sum of other two shifts. The constraint equation is formed to identify the number of students need to be hired for each shift.

Differences between pretax accounting income and taxable income were as follows during 2021: ($ in millions) Pretax accounting income $ 400 Permanent difference (34 ) 366 Temporary difference (26 ) Taxable income $ 340 The cumulative temporary difference as of the end of 2021 is $80 million (also the future taxable amount). The enacted tax rate is 25%. What is the deferred tax asset or liability to be reported in the balance sheet

Answers

Answer:

20 million

Explanation:

Calculation to determine the deferred tax asset or liability to be reported in the balance sheet

Using this formula

Deferred tax asset or liability=cumulative temporary difference as of the end of 2021 *tax rate

Let plug in the formula

Deferred tax asset or liability= $80 million *25%

Deferred tax asset or liability=20 million

Therefore the deferred tax asset or liability to be reported in the balance sheet is $20 million

in damselflies a basal quadrangular cell in the wing venation is called​

Answers

The answer is discoidal cell

Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:

Sales $1,400,000
Net operating income $70,000
Average operating assets $350,000

Required:
a. Compute the Springfield club's return on investment (ROI), margin and turnover value.
b. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further, assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI), margin and turnover value?
c. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI), margin and turnover value?

Answers

Answer:

1. 20%

2.25.2%

3.24%

Explanation:

1. Calculation to determine the ROI

Using this formula

ROI= Net income/Average operating assets

Let plug in the formula

ROI= $70,000 / $350,000*100

ROI= 20%

2) ROI = ($70,000 +$18,200)/$350000"100

ROI=$88,200/$350,000*100

ROI=25.2%

3) ROI = ($70,000 +$14,000)/350000*100

ROI=$84,000/$350,000*100

ROI=24%

Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4.2%. The firm's current common stock price, P0, is $20.00. If it needs to issue new common stock, the firm will encounter a 4.5% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.

Answers

Answer: See explanation

Explanation:

The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:

= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate

= 2.00/[20.00 × (1 - 4.5%)] + 4.2%

= 2.00 /[20.00 × (1 - 0.045)] + 0.042

= 2.00 / (20.00 × 0.955) + 0.042

= (2.00/19.10) + 0.042

= 0.104712 + 0.042

= 0.146712

New cost of equity = 14.67%

You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%

On January 1, 2021, Rapid Airlines issued $240 million of its 8% bonds for $221 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $229 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.

Required:
Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.

Answers

Answer:

June 30

Dr Interest expense $11,050,0000

Cr Discount on bond payable $1,450,000

Cr Cash $9,600,000

December 31, 2021

Dr Interest expense $11,122,500

Cr Discount on bond payable $1,522,500

Dr Cash $9,600,000

December 31, 2021

Dr Unrealized Holding loss -NI $1,000,000

Dr Unrealized Holding loss -OCI $9,972,500

Cr Fair value Adjustment $10,972,500

Explanation:

Preparation of the journal entries to record interest on June 30, 2021

June 30

Dr Interest expense $11,050,0000

($221 million*10%/2)

Cr Discount on bond payable $1,450,000

($11,050,000-$9,600,000)

Cr Cash $9,600,000

($240 million*8%/2)

(To record first interest payment)

Preparation of the journal entries to record interest on December 31, 2021

December 31, 2021

Dr Interest expense $11,122,500

[($221,000,000+$1,450,000)*10%/2]

Cr Discount on bond payable $1,522,500

($11,122,500-$9,600,000)

Dr Cash $9,600,000

($240 million*8%/2)

(To record second interest payment)

Preparation of the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.

December 31, 2021

Dr Unrealized Holding loss -NI $1,000,000

Dr Unrealized Holding loss -OCI $9,972,500

($10,972,500-$1,000,000)

Cr Fair value Adjustment $10,972,500

($229 million-$221 million+$1,450,000+$1,522,500)

(To adjust the bonds to Fair value)

g 2. Problems and Applications Q2 Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increase in net capital outflow, or a decrease in net capital outflow for the United States. Transaction Net Exports Net Capital Outflow Increase Decrease Increase Decrease The Sony pension fund buys a bond from the U.S. Treasury. A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer. An American buys a Toyota. An American investor buys a controlling share in a South Korean electronics firm.

Answers

Answer:

The Sony pension fund buys a bond from the U.S. Treasury. ⇒  Decrease in Net Capital Outflow

Net Capital outflow is calculated by subtracting investments made by foreign entities in the United States from investments made by American entities in other countries. The Sony pension fund in this scenario, invested in the U.S. which would therefore reduce the Net capital outflow.

A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer. ⇒ Increase in Net Exports

Net exports is calculated by subtracting the goods brought into the United States from other countries (imports) from those goods sold by the U.S. to other countries (exports). This scenario shows an increase in exports so Net exports will increase.

An American buys a Toyota. ⇒ Decrease in Net exports

An American buying a Toyota means they imported it so Net exports will go down.

An American investor buys a controlling share in a South Korean electronics firm. ⇒ Increase in Net Capital Outflow

Here cash is leaving the United States for an investment in another country so as per the definition above, Net Capital outflow is increasing.

If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable, the journal entry will include a: _________

a. Debit to variable overhead efficiency variance
b. Credit to variable overhead efficiency variance
c. Debit to variable overhead spending variance
d. Credit to variable overhead spending variance

Answers

Answer:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending varian

Explanation:

Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.

Therefore the journal entry will include a:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending Variance

The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the right. At the same time, government purchases increase by $30 billion. If the MPC equals 0.8 and the crowding-out effects are $30 billion, we would expect that in the long run. (C)

a. real GDP would be higher but the price level would be lower
b. both real GDP and the price level would be lower
c. real GDP would be higher but the price level would be the same
d. both real GDP and the price level would be higher

Answers

Answer:

C. Real GDP would be higher but the price level would be the same

Explanation:

Real gdp would get to be higher as long run aggregate supply goes up. Prices would go down because as long run aggregate supply goes up, aggregate demand does not experience the same proportional increase. As long run aggregate supply goes up, short run aggregate supply falls backwards.

A change in supply is illustrated by a movement along an existing supply curve


true or false

Answers

the correct answer is true.

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? rev: 03_09_2018_

Answers

Answer:

Effect on income= $9,600 increase

Explanation:

Giving the following formula:

Unitary contribution margin= $90

The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in total contribution margin - increase in fixed costs

Effect on income= 190*90 - 7,500

Effect on income= 17,100 - 7,500

Effect on income= $9,600 increase

Parker Company pays each member of its sales staff a salary as well as a commission on
each unit sold. For the coming year, Parker plans to increase all salaries by 5% and to keep
unchanged the commission paid on each unit sold. Because of increased demand, Parker
expects the volume of sales to increase by 10%. How will the total cost of sales salaries and
commissions change for the coming year?
A. Increase by 5% or less.
B. Increase by more than 5% but less than 10%.

Answers

Answer: B is correct

Explanation:

 Sales salaries will increase by exactly 5%. The per-unit commission amount will remain constant, but sales commissions in total are expected to increase by 10%. Thus, total sales salaries and commissions will increase somewhere between 5% and 10%.

VANILLA SWAPS Cleveland Insurance Company has just negotiated a three-year plain vanilla swap in which it will exchange fixed payments of 8 percent for floating payments of LIBOR plus 1 percent. The notional principal is $50 million. LIBOR is expected to be 7 percent, 9 percent, and 10 percent (respectively) at the end of each of the next three years. Determine the net dollar amount to be received (or paid) by Cleveland each year. Determine the dollar amount to be received (or paid) by the counterparty on this interest rate swap each year based on the assumed forecasts of LIBOR.

Answers

Answer: Check attachment

Explanation:

a. Determine the net dollar amount to be received (or paid) by Cleveland each year.

The the net dollar amount to be received by Cleveland for:

Year 1: = $0

Year 2 = $1,000,000

Year 3: = $1,500,000

b. Determine the dollar amount to be received (or paid) by the counterparty on this interest rate swap each year based on the assumed forecasts of LIBOR.

Check the attachment for further details.

Machinery purchased for $73,800 by Blossom Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,920 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,535 at the end of that time. Assume straight-line depreciation.

Required:
Prepare the entry to correct the prior years' depreciation, if necessary.

Answers

Answer:

See explanation

Explanation:

Prior year depreciation lies in the Profit Reserve called  Retained Earnings and in the Asset therefor correct Profit Balance and Asset Balances to effect this adjustment.

Depreciation Expense = (Cost - Salvage Value ) ÷ Estimated Useful Life

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? percent b. What is the Herfindahl index for the hamburger industry in this town? c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = percent Herfindahl index =

Answers

Answer:

a= 75%

b= 1702

c= 94% , 4334

Concord uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $10.00 each. During the month, the company made two purchases: 3000 units at $11.00 each and 11900 units at $11.50 each. Concord also sold 12800 units during the month. Using the FIFO method, what is the ending inventory

Answers

Answer:

$109,250

Explanation:

FIFO assumes that the units to arrive first, will be sold first. Therefore, inventory valuation is based on later or recent prices.

Step 1 : units in ending inventory

Ending Inventory =  units available for sale - units sold

                             =  9,500

Step 2 : inventory value

Ending Inventory = 9,500 x $11.50 = $109,250

Hardware is adding a new product line that will require an investment of . Managers estimate that this investment will have a​ 10-year life and generate net cash inflows of the first​ year, the second​ year, and each year thereafter for eight years. The investment has no residual value. Compute the payback period.

Answers

Answer: 6.17 years

Explanation:

Payback period = Period before debt is paid back + Amount left to to be paid back / Cashflow in year of payback.

Year                   Cash Flows                        Amount left to be paid back

 0                       (1,540,000)                                  (1,540,000)

  1                          315,000                                    (1,225,000)

  2                         265,000                                   (960,000)

  3                         230,000                                   (730,000)

 4                         230,000                                    (500,000)

 5                         230,000                                    (270,000)

 6                        230,000                                     (40,000)

 7                        230,000                                     190,000

Year before payback = 6

Payback amount = 6 + (40,000 / 230,000)

= 6.17 years

The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?

Answers

Answer:

$12 million

Explanation:

Calculation to determine the amount of the retiree benefits paid by the trustee

Beg PBO $280 million

Less En PBO ($300 million)

Add Service cost $18 million

Add Interest cost $14 million

(280million*5%)

Retiree benefits Paid by trustee $12 million

Therefore the amount of the retiree benefits paid by the trustee is $12 million

Use the data below to construct the advance/decline line for the stock market. Volume figures are in thousands of shares. (Do not round intermediate calculations. Round your answers to the nearest whole number. Input all amounts as positive values.) Stocks Advancing Advancing Volume Stocks Declining Declining Volume Monday 1,634 825,503 1,402 684,997 Tuesday 1,876 928,360 1,171 440,665 Wednesday 1,640 623,369 1,410 719,592 Thursday 2,495 1,101,332 537 173,003 Friday 1,532 508,790 1,459 498,585
Adv./Dec. Cumulative
Monday
Tuesday
Wednesday
Thursday
Friday

Answers

Answer:

                Adv./Dec.               Cumulative

Monday               1                            1

Tuesday              2                            3

Wednesday         1                            4

Thursday             5                            9

Friday                   1                            10

Explanation:

Note: See the attached excel file for the construction of he advance/decline line for the stock market.

When a fast-moving consumer goods (FMCG) company faced bankruptcy, the company decided to encourage its employees to contribute their ideas toward organizational development and growth. The organization also asked its human resource team to assess the employees' levels of commitment toward organizational effectiveness. To improve the FMCG company's organizational performance, it is evident that the company most likely used _____. Group of answer choices

Answers

Answer:

Attitude surveys

Explanation:

Attitude surveys are used by employers to gauge how employees view the company and their role in it.

This type of survey exposes issues like lack of trust, low moral from employees, and dissatisfaction in the workplace.

In this instance the organization asked its human resource team to assess the employees' levels of commitment toward organizational effectiveness.

This will allow the FMCG company know how the bankruptcy challenge is being handled by the employees

Prepare general journal entries to record the following transactions.Omit explanations.

Jan.
3 Paid office rent, $1,600.
4 Bought a truck costing $50,000, making a down of $7,000
6 Paid wages, $3,000.
7 Received $1 6,000 cash from customers for services performed.
10 Paid $4,100 owed on last month's bills.
12 Billed credit customers, $5,300
17 Received $1 ,800 from credit customers.
19 Taylor Gordon, the owner, withdrew $1,700.
23 Paid $700 on amount owed for truck
29 Received bill for utilities expense, $255.

Answers

Answer:

Jan 3

Debit : Rent  $1,600

Credit : Cash $1,600

Explanation:

if there is no immediate payment of cash raise a liability - accounts payable

In the free enterprise system, or market economy, individuals are responsible for
being informed and making careful decisions.
True of False

Answers

Answer:

True

Explanation:

Free Enterprise system or market economy is where the individuals have the chance to make decisions on their own. This means that there are no government restrictions.

In this type of economy, the desires of the consumers and the profit-making goals of the producers help in determining what will be produced. In the same manner, the decision on how to produce will be determined by the Labour and the management.

To sum it up, this system allows the individual to decide on the purchasing of goods, the selling of the product, the hiring of Labour, and the type of structure they want to work on, giving them full freedom and responsibility to make decisions.

Henry is a new employee who used to work for your most daunting competitor. When you

are designing an ad campaign, you interview Henry to help you draft an accurate

company.

coercive
reward
referent
information
none of the above.

Answers

Answer:

information

Explanation:

Transactions for Buyer and Seller Ellis Co. sold merchandise to Chang Co. on account, $147,800, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $88,680. Ellis Co. paid freight of $2,500. Assume that all discounts are taken. Journalize Ellis Co.'s entries for the (a) sale, (b) purchase, and (c) payment of amount due. If an amount box does not require an entry, leave it blank.

Answers

Answer:

Transaction a

Debit  :

Credit :

Transaction b

Debit  :

Credit :

Transaction c

Debit  :

Credit :

Explanation:

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and.monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Cho0se the best evaluation of Viola's deci a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. C. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.​

Answers

Answer:  C

Explanation: i took a test on k12 with the same answer

Answer:

A

Explanation:

Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease.

Time, energy, and money are examples of:
-unlimited resources.

-limited resources.

-flexible resources

-fixed resources

Answers

Answer:

Flexible resources

Explanation:

Flexible resources are defined as those that can be utilised under different categories of resource groups.

They are able to serve multiple functions.

For example money can be used for different activities like production of goods, training of staff, purchase of raw materials, and so on.

Time can be allocated to different endeavours.

Same applies to energy. It can be focused on pursuing various objectives

he Hudson Corporation has 8,100 obsolete units of a product that are carried in inventory at a manufacturing cost of $162,000. If the units are remachined for $40,900, they could be sold for $73,000. Alternatively, the units could be sold for scrap for $28,100. The alternative that is more desirable and the total relevant costs for that alternative are:

Answers

Answer:

It is more profitable to re-process the units. Income will increase by $4,000.

Explanation:

Giving the following formula:

Number of units= 8,100

Re-process the units:

Total cost= $40,900

Selling price= $73,000

Sold as-is:

Selling price= $28,100

We will conduct an incremental analysis, therefore the first manufacturing costs should not be taken into account. They remain constant in both options.

Re process:

Effect on income= 73,000 - 40,900

Effect on income= $32,100 increase

Sold as-is:

Effect on income= $28,100 increase

It is more profitable to re-process the units. Income will increase by $4,000.

Clothing Company wants to produce a new line of light weight winter coats. They currently have 2 models of winter coats: a medium weight winter coat and a heavy weight winter coat. They currently sell 55,500 medium weight winter coats each year at a price of $250 per coat. They currently sell 80,200 heavy weight winter coats each year at a price of $320 per coat. If the clothing company decides to sell the light weight winter coat, then they expect to sell 35,700 coats at a price of $190 per coat. If Clothing company sells the light weight winter coat, then they expect to sell only 50,200 medium weight winter coats and 70,800 heavy weight winter coats. What is the incremental revenue generated from potential project

Answers

Answer:

Clothing Company

The incremental revenue generated from potential project is:

= $2,450,000.

Explanation:

a) Data and Calculations:

                                                        Alternative 1     Alternative 2

Units to be sold:

Sale of light-weight winter coat                                  35,700

Sale of medium weight winter coat   55,500            50,200

Sale of heavy weight winter coat      80,200             70,800

Total coats sold                                 135,700           156,700

Selling prices:

Lightweight winter coat = $190 per coat

Medium weight winter coat = $250 per coat

Heavy weight winter coat = $320 per coat

Revenue from Sales:

                                             Alternative 1     Alternative 2      Increment

Units to be sold:

Light-weight winter coat                                 $6,783,000       $6,783,000

                                                                                 (35,700*$190)

Medium weight winter coat $13,875,000      12,550,000        (1,325,000)

                                                 (55,500*$250)       (50,200*$250)

Heavy weight winter coat    25,664,000      22,656,000       (3,008,000)

                                                 (80,200*$320)        (70,800*$320)

Total sales revenue           $39,539,000     $41,989,000      $2,450,000

b) The computations show that Clothing Company would earn additional $2,450,000 in revenue if it embarked on the new project of making and selling 35,700 lightweight winter coats.

Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter favorable variances as negative numbers. Enter unfavorable variances as positive numbers. Price variance $fill in the blank 1 Quantity variance fill in the blank 3 Total direct materials cost variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . The direct materials quantity variance due to a malfunction of equipment that had not been properly operated should be reported to the . The total materials cost variance should be reported to the .

Answers

Answer and Explanation:

The computation is shown below:

a. Direct material price variance

= 80,000 × ($2.65 - $2.5)

= $12,000 unfavorable

Direct material quantity variance

= $2.5 × (80,000 - 86,000)

= -$15,000 favorable

ANd, the total direct material cost variance

= $12,000 unfavorable - $15,000 favorable

= -$3,000 favorable

2.  The direct material price variance should be reported to the purchasing department while the direct material quantity variance should be reported to the production supervisor and the total material cost variance should be reported to the senior plant management

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 3,000,000 $ 9,000,000 Net operating income $ 210,000 $ 720,000 Average operating assets $ 1,000,000 $ 4,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?

Answers

Answer:

1. Return on Investment = Sales Margin / Capital turnover

= (Net income / Sales) ÷ (Assets / Sales)

Osaka:

= (210,000 / 3,000,000) ÷ (1,000,000 / 3,000,000)

= 0.07 / 0.33

= 21%

Yokohama

= (720,000 / 9,000,000) ÷ (4,000,000 / 9,000,000)

= 0.08 / 0.44

= 18%

2. Residual income = Operating income * (Required return * Average operating assets)

Osaka = 210,000 - (15% * 1,000,000)

= $60,000

Yokohama = 720,000 - (15% * 4,000,000)

= $120,000

c. No is isn't because Residual income is not a good matric to use to compare companies or departments as it does not show the amount of assets used by the companies being compared.

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