Answer:
45.69%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ average investment
where,
Net income is
= Annual revenues - annual operating expenses
= $120,000 - ($38,000 + $232,000 ÷ 8 year)
= $120,000 - ($38,000 + $29,000)
= $53,000
And, the average investment would be
= (Initial investment) ÷ 2
= ($232,000) ÷ 2
= $116,000
Now put these values to the above formula
So, the rate would equal to
= $53,000 ÷ $116,000
= 45.69%
Answer:
d. $1,600 less than under absorption costing.
Explanation:
The computation of the carrying value on the balance sheet of the ending inventory of finished goods under variable costing is shown below:
But before that first we have to determine the unit cost which is
Unit fixed manufacturing overhead
= $96,320 ÷ 6,020
= $16
Now the difference is
= Unit fixed manufacturing overhead × Change in inventory in units
= $16 × (6,020 units - 5,920 units)
= $1,600 less than under absorption costing.
Answer:
TV (television)
Explanation:
Advertising frequency is defined as the number of time an advert is viewed by individuals once it come online.
The higher the number of times a user is exposed to an advert in a given time frame the higher the advertising frequency.
Normally it take exposure of 5 times and above for an advertisement to be effective.
Bill’s Surf Shop will have more advertising frequency on television because all categories of customers watch the television. Including children, teenagers, middle aged, and older people.
The other mediums will attract less people. Direct mail is only for those with emails, the web is for technologically savvy clients, and billboards only for those that view them in their location.
Television gives a larger audience.
Answer:
Brainstorm possible solutions
Explanation:
After identifying the problem, Lauren and Jeff will have to find agreeable ways of solving the issues. The solutions must be a joint effort between the two; otherwise, the problems will persist. Each has to propose solutions they deem fit. They will then brainstorm on the proposals and come up with appropriate solutions acceptable by each.
Answer:
I notice two possible issues here:
First, focusing on selling only the base model might increase total sales volume but might not increase profits. Generally, premium models are more expensive and yield a higher contribution margin. I might be wrong here because there is no mention to contribution margins, but generally things work differently. E.g. car salespeople do not usually offer the base model first, they generally show the highest trims.
Second, in countries like Japan, common goals for groups might work since the culture is much more collaborative between group members. But in the US, where performance and success is measured on a much more personal way, it might not work very well. It doesn't mean that team work is no good, but making the whole group responsible for reaching a certain sales goal is not adequate. Imagine that you manage to increase your sales by 15%, but since the total sales of the entire group didn't increase as much and didn't meet the stated goals. What will happen to you? Under normal conditions, increasing sales in such a way would probably result in a bonus besides higher sales commissions.
