Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
<span>1. If Emir says he wants an office with windows and a nice view he is expressing his need for a comfortable job environment. The answer is "b. his job environment".
2. If Lei bikes to and from work every day in order to train for the Olympics her values and work ethic are what are important to her. The answer is "d. her values".</span>
Answer:
a it could be sea but I'm pretty sure it's a but I don't take business so you might not want to trust me
A good strategy for saving or paying of debt is called the snow ball effect.
First, he would definitely need to save for his retirement before anything else.
Then you start tackling the smallest goal first. Once that one is paid off, you take that amount and apply it to the next goal and one from there.
Answer:
Calculate Recline’s contribution margin ratio.
Contribution Margin RATIO 34%
Calculate the break-even point in sales dollars for Recline.
Break-Even Point $1.030.556
Explanation:
- The contribution margin it's determined by the total amount of Gross Profit divided by the total value of sales. To this case $405,000/$1,192,500 = 34%
Income Statement
11.250 Quantities
$106 Unit Price
$1,192,500 Sales
-$787,500 Cost of goods sold
$405,000 Contribution Margin 34%
-$281,250 Fixed Cost
$123,750 Operating Income
- The Break Even point it's when the Operating Income is equal to zero, it means the lowest level of sales the company can afford and not loss money.
BREAK EVEN POINT
9.722 Quantities
$106 Unit Price
$1,030,556 Sales
-$787,500 Cost of goods sold
$243,056 Contribution Margin
-$243,056 Fixed Cost
$0 Operating Income
