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2 years ago

The net profit margin ratio can mathematically be broken down as:______.

Business

1 answer:

Helga [31]2 years ago

4 0

Answer:

d. Tax impact x Capital structure impact x EBIT / Sales

Explanation:

The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues

Also the capital structure is the combination of equity, preferred stock, debt.

So mainly it is broken into tax impact, capital structure impact and net profit margin ratio

Therefore the option d is correct

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"If the previous chart measures CaliMart’s revenues in millions of dollars, how much money did CaliMart make in 2005"

FrozenT [24]

Answer: $12 million

Explanation:

In 2009, Cali made a revenue of $26 million.

In 2005, Cali made a revenue of $14 million.

= 26 - 14

= $12 million

Cali made $12 million more in 2009 than in 2005.

8 0

2 years ago

Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a p

Ne4ueva [31]

Answer:

1. Variable Fixed

Cost of goods sold 70,000,000 30,000,000

Selling Expenses 12,000,000 4,000,000

Administrative Exp. 6,000,000 6,000,000

Total 88,000,000 40,000,000

Note:

Cost of goods sold 70% 30% on 10,000,000 for variable and Fixed respectively

Selling expenses 75% 25% on $16,000,000 for variable and Fixed respectively

Administrative expenses 50% 50% on $12,000,000 for variable and Fixed respectively

2. Unit Variable cost = Total variable cost / Units produced

Total Variable cost 88,000,000

Unit produced 1,000,000

Unit variable cost  88 

Unit Contribution margin = Selling Price - Variable cost per unit

Selling Price $188

- Variable cost per unit $88

Unit Contribution margin $100

3. Break even Point (Units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Contribution margin per Unit 100

Break even Point (Units) 400,000

4. Break even point (units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Increased Fixed cost 5,000,000

Total New fixed cost 45,000,000

Contribution margin per unit 100

Break even point (units) 450,000

5. Determined sales units = (New fixed cost + Desired Income) / Contribution margin

New Fixed Cost 45,000,000

Desired Income 60,000,000

105,000,000

Contribution margin 100

per unit

Determined sales units 1,050,000

6. Maximum Income from operation = Total New sales - Total New variable cost - Total Fixed cost

Sales 188,000,000

Increased sales 11,280,000

Total New sales 199,289,000

Variable cost 88,000,000

New Variable cost 5,280,000

Total New Variable cost 93,280,000

Total New Fixed cost 45,000,000

Maximum Income from 61,000,000

operation

Number of units = Increase in sales / Price per unit

New variable cost = Number of units * Unit variable cost

Increased sales 11,280,000

Price per unit 188

Number of units 60,000

Unit variable cost x 88.00

New Variable cost 5,280,000

7. Net income = Sales - Variable cost - New fixed cost

Sales 188,000,000

Less: Variable cost 88,000,000

Less: New fixed cost 45,000,000

Net Income 55,000,000

8. Option b. In favour of the proposal because of the possibility of increasing income from operation.

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2 years ago

Maxwell Manufacturing makes two models of felt tip marking pens. Requirements for each lot of pens are given below. Fliptop Mode

Leto [7]

Answer:

Step 1

Let us assume that x1 amount of Fliptop and x2 amount of Tiptop models are produced, then the objective function is to maximize profitability with the constraints on the production limited by the available plastic, ink and time. Hence the LP model is given by the objective function and the three constraints as shown below:

Objective function ($) (OF): maximize z = 1000x1 + 1000x2

Plastic material constraint ( Eqn. 1): 3x1 + 4x2 <= 36

Ink material constraint (Eqn. 2): 5x1 + 4x2 <= 40

Time constraint (Eqn. 3): 5x1 + 2x2 <= 30

Non negativity constraints: x1, x2 >= 0

Step 2

Since it is a 2 variable problem it can be solved graphically or using a model solver such as MS-Excel ®. The feasible region is defined by the corner points (boundary points) A, B, C, D, E and the boundary lines of the constraint equations 1,2,3 and the objective function OF as shown in the diagram.

The coordinates and the OF values at the corner points are given below:

A (0,0); OF = 0 (intersection of non-negativity constraints)

B (6,0); OF = 6000 (intersection of x2=0 and eqn 3)

C (4,5); OF = 9000 (intersection of eqn 2 and 3)

D (2, 7.5); OF = 9500 (intersection of eqn 1 & 2)

E (0,9); OF= 9000 (intersection of x1=0 and eqn 1)

Step 3

Hence the optimal solution is given by the point D where the OF equation touches the feasible region with the maximum value. There is an excess of 5 units of molding time available.

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2 years ago

Tender Love, a company that manufactures maternity care products, holds workshops from time to time. During the workshops, train

BabaBlast [244]

Answer: Missionary marketing is indirect selling. The salesperson provides the information about the product and tries to influence the buying decision.

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2 years ago

Quizzn for an optimum esthetic result, what is the minimum time to wait after an anterior tooth extraction before making a final

Tems11 [23]

For an optimum esthetic result, the minimum time to wait after an anterior tooth extraction before making a final impression for a fixed partial denture is 3-4 weeks.

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2 years ago

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