Answer:
1. The return on investment is 20%
2. The total is $40,000
Explanation:
1. The formula for Return on Investment is defined as Net income from the Investment divided by the investment amount.
The net income mentioned in the question is the after-tax profit of $20,000.
The total amount Amelia invested in Goodies Gift Shop is reflected as owner's equity at $100,000 in the balance sheet for Year 2.
Using the formula: Return on Investment = 20,000/100,000 = 20%
2. We can calculate the projected pre-tax profit as follows: Projected margin minus total overhead = 250K - 200K = $50,000
Thus, the after-tax profit is computed as pre-tax profit multiplied by (1 minus tax rate) = 50K x (1-20%) = $40,000
$8,400
The calculation for the annual financial benefit (loss) for the organization is detailed below:
Particulars Make Buy
Direct material $53,600 (8,000 units × $6.70)
Direct labor $64,800 (8,000 units × $8.10)
Variable manufacturing overhead $8,800 (8,000 units × $1.10)
Supervisor's salary $16,000 (8,000 units × $2)
Fixed manufacturing overhead $2,000
Opportunity cost $16,000
Purchase cost $169,600 (8000 × $21.20)
Total relevant cost $161,200 $169,600
Financial (loss) is = $161,200 - $169,600 = -$8,400
We simply compared the make and buy costs and found that purchasing incurs a higher cost than manufacturing, leading to an excess expense of $8,400 if the external supplier is chosen.
Karen dividió su comisión a partes iguales con su corredor, por lo que ella recibe:
Comisión de Karen = $3,522.75 × 0.5 = $1,761.375
El corredor de Karen se llevó el 55 % del total de la comisión, por lo que Karen obtiene solo el 45 % del total. Entonces, la comisión total debe ser:
Comisión total = $1,761.375 ÷ 0.45 = $3,914.17
Con una tasa del 7 %, el precio de venta del inmueble es:
Precio de venta = $3,914.17 ÷ 0.07
<span>Precio de venta = $55,917</span>
Response:
Refer to the explanation section
Clarification:
The disparity between the inventory count recorded and the actual count suggests that the goods in stock have either been sold or lost. For the sake of ongoing operations, it is presumed they have been sold. Accordingly, the journal entry to document the sale is -
December - 31 Cost of goods sold Debit 45,000
($415,000 - $370,000)
Merchandise Inventory Credit 45,000
(To record the sale of merchandise: adjusted)
