Total Capital investment *Target return on investment=Target operating income
Hence:
$15,000,000x10%
= $1,500,000
2.
Target revenues$3,900,000
Less Variable costs1,500,000
Contribution margin2,400,000
LessFixed costs 900,000
Target operating income$1,500,000
$13 per case must be charge in order to earn the target operating income.
Markup per unit/Full cost per unit
=Markup on full costs
($5.00/$8.00)= 62.50%
3.
Target revenues$4,320,000
Less Variable costs1,440,000
Contribution margin2,880,000
Less Fixed costs900,000
Target operating income$1,980,000
Return on investment for Zoom−o−liciousis
will be 13.20%
Increasing the selling price will be a good idea reason been that the operating income have increase without increasing invested capital, which lead to a more higher return on the investment.
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1.$1,500,000
2.62.50%
3.13.20%
Explanation:
1.
Using this formula
Total Capital investment *Target return on investment=Target operating income
Hence:
$15,000,000x10%
= $1,500,000
2.
Target revenues$3,900,000
Less Variable costs1,500,000
Contribution margin2,400,000
LessFixed costs 900,000
Target operating income$1,500,000
$13 per case must be charge in order to earn the target operating income.
Markup per unit/Full cost per unit
=Markup on full costs
($5.00/$8.00)= 62.50%
3.
Target revenues$4,320,000
Less Variable costs1,440,000
Contribution margin2,880,000
Less Fixed costs900,000
Target operating income$1,980,000
Return on investment for Zoom−o−liciousis
will be 13.20%
Increasing the selling price will be a good idea reason been that the operating income have increase without increasing invested capital, which lead to a more higher return on the investment.
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Explanation:
a. primarily outdoors, responding to emergencies and protecting people.
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answer; balance sheets;
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Explanation: