Answer:
True
Explanation:
Since marginal cost is above the average total cost so average total cost is rising.
Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
- financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase
Explanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
Answer:
A.
Explanation:
A. Smartphone headphone is the correct answer, because complementary goods are goods that sell together so, smartphone and headphones are complementary goods.
Answer:
The asset’s anticipated percentage rate of return is 5%
Explanation:
Rate of return is the annual return that an investor earns on an Initial investment in an asset.
RatReturn on Asset = Expected selling price - Initial Purchase price
Return on Asset = $1,050 - $1,000
Return on Asset = $50
Rate of return = Return on Asset / Initial Purchase price = $50 / $1,000 = 0.05 = 5%
Answer:
There the company's net income is $1.2 million.
Explanation:
Solution
Given that:
The Profit Margin is = 8% of Sales
Thus
DTO Inc's Net Income will be 8% of $ 15 million =$ 1,200,000 or $ 1.2 million
=$15 million *8% = $1.2 million
(ROA) or Return on Assets = Net Income / Total Assets
= $ 1.2 million / $ 12.6 million
= 9.52%
Then
Total Assets = Total Debt + Total Equity
So the Total Assets are $ 12.6 million, and the Total Debt is $ 5.6 million, then the Total Equity works out to $ 7 million.
=$12.6 million - $ 5.6 million
=$7 million
Hence
Return on Equity (ROE) = Net Income / Total Equity = $ 1.2 million / $ 7 million = 17.14%
