This is possible because both products have the same allocation of raw materials, costs, and labor. <span> There wouldn't be any conflict with the change. </span><span> In business, this is called joint product. </span><span>This has been a business practicality measure for better costs planning and production. </span>
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.
Answer: $380,000
Explanation:
From the question, we are informed that New Jersey Company owns 80% of the common stock of Newark, Inc. In 2012, New Jersey reported sales of $300,000, and Newark reported sales of $100,000, including sales to New Jersey of $20,000.
Based on the above information, the amount of sales that should be reported in the consolidated income statement for 2012 will be:
$300000 + $100000 - $20,000
= $380000
Answer:
The increase in the monthly payment amount is $180
Explanation:
In order to calculate the increase in the monthly payment amount we would have to make the following calculation:
increase in the monthly payment amount=installment increase-installment
installment=(loan amount/1,000)*rate of interest
installment=($120,000/1,000)*4
installment=$480
installment increase=(loan amount/1,000)*rate of interest
installment increase=($120,000/1,000)*5.5
installment increase=$660
increase in the monthly payment amount=$660-$480
increase in the monthly payment amount=$180
The increase in the monthly payment amount is $180
