Gauntlett Inc. reported the following results from last year's operations: Sales$12,000,000Variable expenses 9,580,000Contribution margin 2,420,000Fixed expenses 1,460,000Net operating income$960,000Average operating assets$5,000,000?At the beginning of this year, the company has a $1,300,000 investment opportunity with the following characteristics: Sales$4,680,000 Contribution margin ratio 50% of salesFixed expenses$2,059,200 ?If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:
A. 1.90
B. 12.83
C. 2.65
D. 3.34
Answer: C
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________ is the belief that one's own norms and the products made in one's own country are superior
A) Nationalization B) Ethnocentrism C) Domestication D) Expropriation E) Democratization
On February 1, Year 1, Centra issues $100,000 semi-annual 12% bonds at par plus accrued interest. The interest is payable on July 1 and January 1 of each year. What entry is necessary to record the issuance of the bonds on February 1?
a. Cash 100,000 Bonds Payable 100,000 b. Cash 101,000 Bonds Payable 101,000 c. Cash 100,000 Interest Payable 1,000 Bonds Payable 101,000 d. Cash 101,000 Bonds Payable 100,000 Interest Payable 1,000 e. none of the above
The Cup is a small shop in a small Pennsylvania town with a very loyal following. It has become well known in the town as well as in many of the towns surrounding it. Consumers seem to love the homey, local feel of The Cup. As a result, The Cup would like to open a new store in one of the towns close by. It has identified a region it thinks could be profitable. It has many loyal customers who live in that town. However, the town is also home to a Starbucks store. The town is growing, and The Cup has heard rumors that a Dunkin' Donuts may open. The owner is currently evaluating the relevant market segments in the area (Step 4). He has the following questions he wants to answer: 1. Do we have enough of a loyal following as a local shop that we can attract customers away from Starbucks? 2.
With the town growing as fast as it is, will other coffee shops decide to locate there? The owner is conducting a _____________ to evaluate relevant market segments. A. sales estimate B. SWOT analysis C. cost estimate D. competitive assessment E. market segmentation strategy
The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS. If a 20.00% increase in sales causes EPS to increase from $1.00 to $1.50, and if the firm uses no debt, then what is its degree of operating leverage? Do not round intermediate calculations.
A. 2.1250 B. 2.8500 C. 2.4750 D. 2.5000 E. 2.0000