Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Pricing and return on investment.
Salvador SA assembles motorcycles and uses long-run (defined as 3-5 years) average demand to set the budgeted production level and costs for pricing. Prices are then adjusted only for large changes in assembly wage rates or direct materials prices. You are given the following data:
Direct materials, assembly wages and other variable costs €1320 per unit Fixed costs €300 000 000 per yearTarget return on investment 20%Normal utilisation of capacity (average output) 1 000 000 unitsInvestment (total assets) €900 000 000
Required
1. What operating profit percentage on revenues is needed to attain the target return on investment of 20%? What is the selling price per unit?
2. Using the selling price per unit calculated in requirement 1, what rate of return on investment will be earned if Salvador assembles and sells 1 500 000 units? 500 000 units?
3. The company has a management bonus plan based on yearly division performance. Assume that Salvador assembled and sold 1 000 000 units, 1 500 000 units and 500 000 units in three successive years. Each of three people served as divisional manager for one year before being killed in a car accident. As the principal heir of the third manager, comment on the bonus plan.
Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of..
annandale inc sells and produce wireless reading devices. a competitor danube electronic products sells similar
Prepare the schedules for each month in the first quarter of 2010 and for the quarter in total expected collections from clients.
Evaluate the depreciation expense for the second years of operation using (a) straight-line method, (b) units of production, (c) declining balance method at twice the straight line rate and (d) sum of the years method.
1) What is the supplementary record that a company creates and maintains in a separate account for each customer called? The controlling account The schedule of accounts receivable The accounts receivable subsidiary ledger Either A or B above None of..
An auditor's purpose in auditing the information contained in the pension footnote most likely is to obtain evidence concerning management's assertion about
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. Distributed cash based on safe balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for thi..
Calculate the total after-tax cost of the present values of the cash flows associated with each alternative and which financial alternative would you recommend that the company accept? Why?
multiple choice questions based on stock valuation.1.nbspcarter corporation had net income of 250000 and paid dividends
Example on Inventory Valuation
Prepare journal entries for common stock issued above par value and draw up a Balance Sheet showing how these entries are reflected therein.
valuation of plant assets and land as per gaaps.martin buber co. purchased land as a factory site for 400000. the
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd