Answer:
The correct answer is D
Explanation:
The formula to compute the EBIT (Earnings before Interest and Tax) is as:
EBIT (Earnings before Interest and Tax) = Revenue - Provision for income tax - amortization and depreciation - Interest expense - income from continuing operation
where
Revenue is $2,462
Depreciation and amortization is $216
Provision for income tax is $40
Income from continuing operation is $53
Interest expense is $230
Putting the values above:
EBIT = $2,462 - $216 - $230 - $53 - $40
EBIT = $1,923
Answer: It drives down prices and increases the economic welfare of consumers.
Explanation:
Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.
With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.
Answer:
ROI = 20.90%
Explanation:
Operating Income:
= Operating Income of Retail Division + Operating Income of Wholesale Division
= $7,500,000 + $4,000,000
= $11,500,000
Operating Assets:
= Operating Assets of Retail Division + Operating Assets of Wholesale Division
= $37,500,000 + $17,500,000
= $55,000,000
ROI = (Operating Income ÷ Operating Assets) × 100
ROI = ($11,500,000 ÷ $55,000,000) × 100
ROI = 20.90%
Answer: b. preparing the financial statements
Explanation: As accounting involves recording, classifying, summarizing, and the interpretation financial information, the accounting process, is considered a series of procedures that are employed in the collection, processing, and communication of financial information. In the accounting process, journal entries are first adjusted (identifying and analyzing business transactions and events) after which they are posted. This represents the first and second steps. Then the adjusted trial balance is prepared, followed lastly by the preparation of financial statements. Therefore, the preparation of financial statements is completed last.
The last step in the accounting process among the options provided is b. preparing the financial statements. The process begins with journalizing, leading through posting, and preparing the adjusted trial balance, before culminating in the financial statement's preparation.
The last step in the accounting process among those provided would be b. preparing the financial statements. The accounting process usually follows these steps: Firstly, transactions are d. journalized (recorded in the journal). Next, these journal entries are a. posted to the ledger. Then, an unadjusted trial balance is prepared to check the equality of debits and credits. The next step is adjusting entries and c. preparing the adjusted trial balance. Finally, the accounting period ends with the preparation of the financial statements, reflecting the company's financial health.
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a) What is the economic production quantity?
enter your response here units (round your response to two decimal places).
The economic production quantity (EPQ) is a formula used to determine the optimal production quantity that minimizes both holding and ordering costs. The economic production quantity for Race One Motors is 2043.08 units.
In the case of Race One Motors, we need to find the ideal production quantity that will help the company maintain its inventory while keeping its costs at a minimum.
Using the given information, we can calculate the EPQ as follows:
EPQ = sqrt[(2AO) / H]
Where,
A = annual usage rate of subcomponents
O = ordering cost per order
H = holding cost per item per year.
Plugging the values, we get:
EPQ = sqrt[(2 x 31250 x 200) / 6]
EPQ = sqrt[(12500000) / 6]
EPQ = 2043.08
Therefore, the economic production quantity for Race One Motors is 2043.08 units. This means that if the company produces this amount of subcomponents, it will be able to minimize its holding and ordering costs.
It is important for Race One Motors to determine the EPQ because it helps the company to optimize its production and inventory management. By producing the optimal quantity, the company can reduce its holding costs, which include storage, insurance, and handling costs. At the same time, by minimizing the number of orders placed, the company can also reduce its ordering costs, which include administrative and transportation expenses.
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Answer:
a. Contribution margin ratio = Contribution per unit/selling price
= $18/$$5
= 0.4 = 40%
b. Contribution per unit = Selling price - Variable cost per unit
= $45 - $27
= $18
c. Income from operations $
Total contribution ($18 x 160,000 units) 2,880,000
Less: Fixed cost 975,000
Income from operations 1,905,000
Explanation:
Contribution margin ratio is the ratio of contribution per unit to selling price
Contribution per unit is the excess of selling price over variable cost per unit
Income from operation is the excess of total contribution over fixed cost
a. total fixed costs must be increasing
b. average variable cost must be increasing,
c. marginal cost must be below average total cost.
d. average fixed costs must be increasing.
e, average total cost is no longer equal to the sum of average variable cost and average fixed cost.
Option (a) total fixed costs must be increasing if the average total cost is increasing as output rises.
In the short term, as a company's output increases, its average fixed cost decreases. Fixed costs remain the same regardless of the number of products produced. As performance improves, the fixed cost contribution per unit decreases.
On the short-term curve, much of the initial downslope is due to lower average fixed costs. Increasing the variable input return at low output levels also plays a role, but the slope is due to the decreasing limit variable input return.
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