All categories

2 years ago

I sell shoes for $250 per pair. They cost me $25 to produce. My markup on cost is:______

Business

1 answer:

aalyn [17]2 years ago

7 0

Answer:

Markup percentage= 900%

Explanation:

Giving the following information:

I sell shoes for $250 per pair. They cost me $25 to produce.

To calculate the markup percentage, we need to use the following formula:

Markup percentage= [(selling price - unitary cost)/unitary cost]*100

Markup percentage= [(250 - 25)/25]*100

Markup percentage= 900%

You might be interested in

Lee sun's has sales of $3,650, total assets of $3,350, and a profit margin of 5 percent. the firm has a total debt ratio of 41 p

Kisachek [45]

Calculation of Return on Equity:

Return on Equity can be calculated using the following formula:

Return on Equity = Net Income / Equity

We can calculate net income using the following formula:

Net Income = Sales * Profit Margin = 3650*5% = $182.50

And we can calculate Equity using the following formula:

Equity = Total Assets * (1-Total Debt ratio) = 3350*(1-41%) = $1976.50

Now Finally,

Return on Equity = Net Income / Equity = 182.50 / 1976.50 = 9.23%

Hence the return on equity is 9.23%

8 0

2 years ago

Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing

bogdanovich [222]

Answer:

a.Year 1 = $277,440, Year 2 = $280,280, Year 3 = $272,560

b.i. Inventory Increased in year 4

b.ii $12,500 deferred in inventory

Explanation:

Absorption Costing Income for Year 1, Year 2, Year 3

Hint: Reconcile the Variable Costing Income to Absorption Costing Income

Year 1 Year 2 Year 3

Variable Costing Income $300,000 $269,000 $250,000

Add Closing Inventory $90,240 $101,520 $124,080

Less Opening Inventory ($112,800) ($90,240) ($101,520)

Absorption Costing Income $277,440 $280,280 $272,560

Here we are adding and subtracting the fixed manufacturing overhead in closing and opening inventory.

This is because difference in Variable Costing Income and Absorption Costing Income lies within fixed manufacturing costs included in inventory.

Inventory Increased in year 4

Inventory deferred in Inventory = $261,600 - $249,100

= $12,500

4 0

2 years ago

Fran is the project manager in her organization. She reports to a PMO (project management office) that takes control of the proj

WINSTONCH [101]

Answer:

Directive PMO

Explanation:

A project management office(PMO) refers to creation of groups and departments within an organization so as to define standards and to ensure those standards are met.

In a directive form of project management office, it completely takes over projects and allots resources, and assigns project managers to projects.

In such a form of Project management office, the project managers are supposed to report to such directive offices.

In the given case, since Fran reports to such a PMO form which assumes control of the projects and manages the project, this is a directive form of project management.

8 0

2 years ago

Spontaneously generated funds are generally defined as follows: a. Funds that a firm must raise externally through borrowing or

siniylev [52]

Answer: e. Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include spontaneous increases in accounts payable and accruals.

Explanation:

Spontaneously Generated Funds are a result of an increase in sales. This then in turn leads to an increase in Accounts Payables, wages to employees and taxes to the Government. For example, if sales rise then the company will buy more from.its suppliers leading to a higher Payables balance.

It is used in the calculation of Additional Funds Needed where it along with an increase in Retained earnings is subtracted from the required increase in sales.

6 0

2 years ago

NanoTech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A)

Varvara68 [4.7K]

Answer:

Process A= from 10,001 to 19,999

Process B= 20,001 to infinity

Process C= from 0 to 9,999

Explanation:

Giving the following information:

Process A has a fixed cost of $200,000 and a variable cost of $40 per unit.

Process B has a fixed cost of $600,000 and a variable cost of $20 per unit.

Process C has no fixed cost since the item is purchased. It's variable cost is the purchase price of $60 per unit.

The general rule is that the lower the fixed costs, the fewer units are required to cover for costs. To determine the number of units for each process, we will compare process C to A, and then A to B.

Process C and A:

Process A= 200,000 + 40x

Process C= 60x

x= number of units

200,000 + 40x= 60x

200,000= 20x

10,000 = number of units

The indifference point is 10,000 units. From 0 to 9,999; process C is more convenient.

Process A and B:

Process A= 200,000 + 40x

Process B= 600,000 + 20x

200,000 + 40x = 600,000 + 20x

20x= 400,000

x= 20,000

The indifference point is 20,000 units. From 10,001 to 19,999; process A is more convenient.

8 0

2 years ago