574 words - 3 pages
Profit margin:
A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.
Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin is displayed as a percentage; a 20\% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales.
Inventory Turnover:
Inventory turnover ratio is used to measure the inventory management efficiency of a business. In general, a
VIEW DOCUMENT
4725 words - 19 pages
Case Study
Name
Personal & Organizational Ethics
Instructor
Date
Case Study
Abstract:
A Not-for-profit organization has similar issues like a for-profit organization. This case study examines Community Development International, a Not-for-Profit organization, and The Home Depot, a For-Profit organization. It examines both organizations from the beginning to now. It states the mission statements of each organization and describes the work each has done or is doing. It examines the ethical values of each organizations and the issues each has gone through or is going through with solutions as to how to fix each issue.
Introduction:
When analyzing an organization one
VIEW DOCUMENT
4266 words - 18 pages
groups, fundraising, media, clients and other nonprofit organizations. (Non-profit career roadmaps, n.d.) With a multitude of areas available to find a career in there are also a plethora of specializations in the nonprofit employment sector. These specializations includes 41.9% for health services, 21.9% for education/research, 18.3% for social and legal services, 11.8% for religious organizations, 3.9% for civic, social, and fraternal organizations, 1.9% for arts and culture, and 0.3% for foundations. ("International careers guide:" 2006)
Nonprofit management is an increasing and dynamic career field characterized by the growth of new organizations and new programs developed to improve
VIEW DOCUMENT
1396 words - 6 pages
The Morality Of Profit
Idea outline
Broken down into:
1. History of profit
2. Cases of immoral profit
3. Cases of good profit that benefit human kind
4. Closing paragrah
(Intro)
(Scott idea of small business man making an honest profit to large corporations taking advantage of people)
History of profit:
Ever since the history of man there has been trade. In the beginning, people bartered. Eventually money was used and used in the business of profit. Metals objects were introduced as money around 5000 B.C. By 700 BC, the Lydians became the first in the Western world to make coins. But in the quest of making a profit and honest living took a turn and man realized
VIEW DOCUMENT
2690 words - 11 pages
CHAPTER 1
GOVERNMENTAL AND NONPROFIT ACCOUNTING:
ENVIRONMENT AND CHARACTERISTICS
ANSWERS TO QUESTIONS
QUESTION 1-1
a. The similarities of accounting for profit-seeking and G&NP organizations include:
1. Double-entry system of accounts.
2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts.
3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that for a similar private business (e.g., electric utility).
b. Among the unique aspects of G&NP organization accounting are:
1. Fund accounting—designed to separate resources according to
VIEW DOCUMENT
2298 words - 10 pages
variable costs as the most important calculation for decision making.
2. BREAK-EVEN ANALYSIS
2.1 Break-even analysis is the study of the interrelationship between costs, volume and profit at various levels of activity and is also known as cost-volume-profit analysis (or C-V-P analysis).
CVP analysis is a technique which uses cost behaviour to identify the level of activity at which we have no profit or loss (break-even point). It allows management to identify the volume of sales required to cover the total cost, or, the point at which total revenue equals total cost.
It can also be used to predict the profits or losses to be earned at varying activity levels (using the assumed
VIEW DOCUMENT
875 words - 4 pages
Profit and Loss Statement Paper
Dustin Klusman
BSA/310
March 16, 2013
Sharon Foreman
Profit and Loss Statement Paper
Companies use an income statement to report costs, expenses, revenue, and other incomes over a specified accounting period. This time period is usually quarterly, semi-annually, or annually. Analyzing the information contained within the Kudler Find Foods income statement for the year ending December 31, 2003 will show these different areas within the company. Each section will be analyzed to explain the information presented. The sections of the income statement are as follows
• Revenue
Net Sales
• Cost of Goods Sold
VIEW DOCUMENT
1107 words - 5 pages
Market structures, there are four structures in the characteristics in the market is known as perfect competition, monopoly, monopolistic competition, and oligopoly. In the report, I will sum up each market structure and explain what they are and how they work. Reporting about the maximizing of profits in the company and explaining how the three constraints work to maximize the profit of a business, maximizing the profit of the product being produce and the best price possible for the company to make a profit to survive. If the profit is not made the company at a loss can close their doors. Market structure is very important to maintain the cost of a product so a company can stay in
VIEW DOCUMENT
524 words - 3 pages
2. “General Mills Profit Drops 25%”, Published on September 17, 2014, WSJ
This article explained General Mills tried against tough industrywide environment, while company performed even worse than same term in last year in core business with announce fresh deal. With announce plan to acquire Annie’s, an organic-food marker, with 37% premium to the share price in the deal. Because organic and natural foods is more attraction than traditional brands such as General Mills. General Mills tried to cut costs and shrink capacity to finish deal and respond to week demand. But Investors and markets response is not good. The share price is declining 3.7% in afternoon trading. From the article, we
VIEW DOCUMENT
1306 words - 6 pages
, Non Profit Organizations, Community Representatives, Workforce Solutions, and Athletic Association, etc. The report will be shared state wide in the hope that it will serve as an ongoing resource to influence large-scale initiatives as well as grassroots projects within communities that positively help educate young people with the skills, information and opportunity to succeed in society.
VIEW DOCUMENT
598 words - 3 pages
|
How To Map Your Industry’s Profit Pools |
Bus J-411 |
|
Carl Greeno III |
10/1/2013 |
In this article it describes a useful framework for analyzing how profits are distributed among the various activities that form an industry’s value chain. A profit-pool opens a window onto the underlying structure of the industry, helping managers see the economic and competitive forces that are determining the distribution of profits. The strategy of a firm should be informed by an understanding of the sources and distribution of profits generated in an industry. Gadiesh and Gilbert took a value chain perspective to this when developing the profit pool framework. Profitability in
VIEW DOCUMENT
825 words - 4 pages
Tax Paradise by Parking Profit Offshore
There was a heated debate flowing among the headline of mainstream media about General Electric's 2010’s tax position. It was first published by the Times and pointed out that General Electric, by its aggressive strategy and “innovative” accounting, paid nothing in federal taxes in the year 2010, even it made billions in profit.
Generally speaking, it has become increasingly common for those gigantic multinationals to take advantages of the tax regulations by keeping those “geniuses” in their tax department and, at the meantime, exerting their powerful lobbyist skill. But how is it possible that such a giant American business with a profit of
VIEW DOCUMENT
932 words - 4 pages
It is vital to understand the cash position and the profit do not necessarily go together when running business. Profitable businesses still can go out of business because of cash flow problems. Cash flow is the movement of money in and out of the company’s bank account during a financial period. While profits are determined by the income earned with the expenses incurred in earning that income, which reveals the profit is simply the result of income minus expenses. However, transactions of income and expenses take place not only on a cash basis but also on a credit basis. Accounting, therefore, has to be used to adjust the timing difference in recording transactions to reflect the whole
VIEW DOCUMENT
1110 words - 5 pages
Native American Casinos produce monstrous revenues and create an enormous job market. Their influence on a community, however, is not necessarily positive. Venues which facilitate gambling are known to also foster alcoholism, depression, and drug use within their community. Additionally, Native Americans are not the main benefactors of the profits. Foreign millionaires, and investment firms swallow nearly all the profits. Finally, where are the kick backs to the community. Less than one-third of the states containing Native American casinos collect tax revenues from the businesses. Though the bright lights and entertainment may cloud some citizens' view, when do we, as law abiding, ethical
VIEW DOCUMENT
971 words - 4 pages
Profit maximisation is when firms maximise their profits through sales and increasing the price of products. Profit maximisation occurs when total sale revenue is furthest above total cost which is when MR= MC. Firms are usually controlled by the managers, in order for managers to keep its position its must gain enough or maximise the firms’ profits, so it can satisfy the shareholders. However managers may want to take a different approach rather than maximising the firms’ profits. Managers may want to maximise managerial objectives such as maximising its sales rather than profits. However although they are taking a different approach, they still must gain enough profits to satisfy the
VIEW DOCUMENT
559 words - 3 pages
Citizens Medical Center is a non for profit, short term acute care facility controlled by the county government and is therefore considered tax exempt under section 501(c)(3) of the Internal Revenue Service. Citizens is mostly provided their funding through state government, non partisan/non political donations, and gross patient revenue.Due to their non for profit status Citizens is required to maintain three main requirements set forth by the Internal Revenue Service. First they are required to be organized and operate exclusively in compliance with their exempt purposes, (The Internal, 2007). Citizens Medical Center complies with this condition in that they are solely intended to provide
VIEW DOCUMENT
703 words - 3 pages
Chinese
market. The report provides key statistics on the market status of the Mixing
Station manufacturers and is a valuable source of guidance and direction for
companies and individuals interested in the industry.
In this part, the report presents the company profile, product specifications,
capacity, production value, and 2010-2015 market shares for each company.
Through the statistical analysis, the report depicts the global and Chinese total
market of Refuse Compression Collector Industry including capacity, production,
production value, cost/profit, supply/demand and Chinese import/export.
The total market is further divided by company, by country, and by
application
VIEW DOCUMENT
679 words - 3 pages
piperazinate industry including capacity, production,
production value, cost/profit, supply/demand and Chinese import/export. The
total market is further divided by company, by country, and by application/type
for the competitive landscape analysis.
Table of Contents
Chapter One Introduction of Acefylline piperazinate Industry
1.1 Brief Introduction of Acefylline piperazinate Industry
1.2 Development of Acefylline piperazinate Industry
Chapter Two Manufacturing Technology of Acefylline piperazinate Industry
2.1 Development of Acefylline piperazinate Industry Manufacturing Technology
2.2 Analysis of Acefylline piperazinate Industry Manufacturing Technology
Browse Full Report
VIEW DOCUMENT
771 words - 4 pages
Chinese
market. The report provides key statistics on the market status of the Mixing
Station manufacturers and is a valuable source of guidance and direction for
companies and individuals interested in the industry.
In this part, the report presents the company profile, product specifications,
capacity, production value, and 2010-2015 market shares for each company.
Through the statistical analysis, the report depicts the global and Chinese total
market of Water and Foam Fire Vehicle Industry including capacity, production,
production value, cost/profit, supply/demand and Chinese import/export.
The total market is further divided by company, by country, and by
application/type
VIEW DOCUMENT
909 words - 4 pages
. Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not?
2. Determine whether each of the following is an explicit cost or an implicit cost:
a) Payments for labor purchased in the labor market
b) A firm’suse of a warehouse that it owns and could rent to another firm
c) The wages that owners could earn if they did not work for themselves
3. What are economies of scale? Please give an example. What are diseconomies of scale? Please give an example.
4. Your rich relative died and left you $100,000, which
VIEW DOCUMENT
845 words - 4 pages
Expenses should be reported by function or program. Direct expenses are those associated with a function or program. Indirect expenses are those that are not directly linked to an identifiable function. Revenues should be distinguished between program revenues and general revenues. Program revenues are reported in the program or functions section of the statement. General revenues are not directly linked to any program orbfunction and reported in the bottom section of the statement. Program revenues are reported in the charges for services, operating grants and contributions and capital grants and contributions. Extraordinary items, special items, and transfers are reported separately on
VIEW DOCUMENT
1894 words - 8 pages
Hagerstown, founded in 1762, is a small town located about 72 miles to the west of Baltimore, covering about 12.1 square miles and home to 39,662 residents. The city is known as the Hub City because of the intersection of interstate I-70 and I-81, routes 40 and 11, and the railways for CSX Transportation and Norfolk Southern. It’s a small bedroom town for those that travel to Washington, D.C. or other surrounding cities for work. Although, a large majority of the city’s population is employed by the Washington County Public Schools as well as Meritus Health, which owns the recently constructed hospital. Based upon the most recent CAFR the city of Hagerstown seems to be in relatively
VIEW DOCUMENT
960 words - 4 pages
Homework 2
1. ABC earned a net profit margin of 6.7% last year and had an equity multiplier of 3.5. If its total assets are $97 million and its sales are 171 million, what is the firm's return on equity?
Enter your answer in percentages rounded off to two decimal points.
Answer:
Net profit margin = Net profit / sales
Sales = 171 million
Net profit margin = 6.7%
Net profit = 171 * 6.7% = 11.46 million
Equity multiplier = Total assets/ shareholders equity
3.5 = 97 / shareholders’ equity
Equity = 97/3.5 = 27.71
Return on Equity = Net profit /Equity
= 11.46/27.72 = 41.34%
2. ABC's balance sheet indicates a book value of shareholders' equity of
VIEW DOCUMENT
716 words - 3 pages
a case, both bond and stock investors could lose some or all of their investment. On the other hand, a company that realizes large profits will have more money to pass on to its investors.
Net profit of the company for year 2006=18.829.434
Net profit of the company for year 2007=16.632.605
Net profit of the company for year 2008=6.926.196
Earning before tax=net profit +income tax
Earning before tax for year 2006=18.829.434+3.695.726=22.525.160
Earning before tax for year 2007=16.632.605+3.448.542=20.081.147
Earning before tax for year 2008=6.926.196+2.519.183=9.445.379
Earning before interest and taxes=earning before tax+interest
Earning before interest and taxes for year 2006
VIEW DOCUMENT
1074 words - 5 pages
Non-Profit Sector in Canada
The non-profit sector in Canada is one of the largest in the world, second only to Netherlands. Canada’s non-profit sector employs about 12.8% of its active economic population. Although the non-profit sector is not considered a specific industry, its Gross Domestic Product (GDP) can be compared to several key industries in Canada. Statistics Canada divides the Canadian non-profit sector into two: the core non-profit sector and the overall non-profit sector. The core non-profit sector excludes hospitals, universities, and colleges. Including hospitals, universities, and colleges, Canada’s non-profit sector contributes in excess of $100 billion or
VIEW DOCUMENT
617 words - 3 pages
ASSIGNMENT # 4: FINANCIALS
Due via email by: Sunday, November 16th (11:59pm)
Please show your work – either by hand and scanned in or you can use a program like Excel or Word. If you show your work, I can give you partial credit for incorrect answers.
Question # 1:
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $275,000 (at cost). Operating costs are $90,000.
a. Calculate the cost of goods sold
b. Calculate the net profit
Question # 2:
A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the
VIEW DOCUMENT
1583 words - 7 pages
Comparative Summary
Kristina O'Bryant
HCS/577
May 23, 2016
Ronald Sugar
Comparative Summary
There are several financial environments that various entities exist in. These include for-profit, not-for-profit, and government organizations. These environments have many similarities, as well as differences. Examples of these may include the Methodist Hospital in San Antonio, which is a for-profit organization; the American Heart Association, which is a not-for-profit organization; and the U.S. Department of Health and Human Services, which is a government organization. Each of these organizations has their own practices and policies unique to them.
Not-For-Profit
According to
VIEW DOCUMENT
3291 words - 14 pages
Nowadays, with the continuous rapid economic development, the profit distribution in social enterprises has become more and more prominent. Distributing profit wisely has become an important starting point for a social enterprise’s management and operation. The executors of social enterprises hope to get a more perfect method to distribute profit so that they can make more reasonable operation plans. Practically, a reasonable distribution of profits is the guarantee for the sustainable development of social enterprises. Because of the career of my mom(i.e. she is a business executor), I find it very interesting to learn some financial distribution patterns in enterprise. That is my
VIEW DOCUMENT
603 words - 3 pages
ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems
ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems
Product Description
Resources: Ch. 4 & 6 of Government and Not-for-Profit Accounting
Prepare written answers to the following problems from Government and Not-for-Profit Accounting:
Ch. 4: Problem 4-16 – The distinction between exchange and nonexchange revenues is not always obvious.
Ch. 6: Continuing Problems 1–4, found at the beginning of the Problems section at the end of the chapter. For this assignment, use the CAFR your team selected in Week Two.
ACC 460 Week 3 Learning Team Ch. 4 & 6 Textbook Problems
ACC 460 Week 3 Learning Team Ch. 4 & 6
VIEW DOCUMENT
616 words - 3 pages
QUESTION 1
Basic Information:
Sales: Year 1 Nil
Year 2 RM 10,000
Year 3 -6 RM 15,000
Costs:
Fixed cost Year 1-6 RM 3,000
Variable cost 30% of sales
Investment RM 25,000
Terminal Value of InvestmentRM 5,000
Depreciation 10% of initial investment
Please prepare the Cash Flow Statement and estimate – (a) Payback Period; (b) Net Present Value (NPV) at 10% discount rate; and (c) Internal Rate of Return for the Project. Also prepare a Profit &Loss Statement and compute the average profit for the Project life.
ANSWER：
Cash Flow Statement
Cash Flow Statement |
| RM |
| Year 1
VIEW DOCUMENT
1569 words - 7 pages
a. Discussion Questions: 9
b. Problems: 6, 9, and spreadsheet problem (p.37)
9) How Is The Concept Of A Normal Return On Investment Related To The Distinction Between Business And Economic Profit?
The difference between the business and economic profit is that in economic profit, profit or loss is calculated by subtracting opportunity cost of the inputs used from the revenue of sales. On the other hand, accounting or business profit is the difference between the total revenue and total costs incurred to earn that revenue. Now, in business accounting normal return is the minimum profit that is required to cover the costs of inputs and all of the expenses associated with it
VIEW DOCUMENT
1261 words - 6 pages
test ratio = Current assets – stock
Current liabilities
Financing Ratios
1) The interest cover ratio measures the risk for a company not to pay the interest due to banks, government and shareholders
Means : Amount of profit available to cover interest payments
Whats Hot : the higher, the more funds available to meet interest payments
Interest cover = PBIT We can also use the PBITDA
Interest payable
2) The debt to equity ratios = the gearing or the leverage, measures the contribution of long-term debt to the long-term capital structure of the business. Determine as a percentage
Means : Contribution of long-term lenders to the long-term
VIEW DOCUMENT
1131 words - 5 pages
sell at least 3 chicken dinners for every two pork dinners. They also believe that at least 10 percent of their customers will order pork dinners. The profit from each chicken dinner will be $12, and the profit from a pork dinner will be $16.
Formulate a linear programming model for B & B, that will help them estimate the number of meals they should prepare each night and solve this model by computer.
A. They are considering investing in some advertising to increase the maximum number of meals they serve. They estimate that if they spend $30 per day on a newspaper ad, it will increase the maximum number of meals they serve per day from 60 to 70. Should they make the investment?
B
VIEW DOCUMENT
1018 words - 5 pages
EGTI Task 1
Marginal Analysis
In order for any business to be successful they would need to know how to make the most profit for the goods they are producing and selling. In this paper I am going to explain some of the key terms that companies need to keep in mind when operating their business. First, we will start with marginal revenue, which is defined simply as the extra revenue that is made for each additional unit of a product that is sold. This is directly related to marginal cost, which is what it costs the company to make that additional unit of product.
Next there is total cost and total revenue. Total cost is what the company spends to produce a certain quantity of its
VIEW DOCUMENT
582 words - 3 pages
/ Richard Bronson) are visionaries that are concerned with profit maximization but also the welfare of the public. Social entrepreneurship shapes the frontiers between the profit- oriented sectors and the non-profit oriented sectors as social enterprises can vary from for-profit community development organizations such as hybrid organizations which have both profit and non-profit elements. This is so because of the different traditions of social entrepreneurship in different parts of the world. Some examples of non-profit social enterprises are the Forest Stewardship Council (FSC), BRAC (NGO) or the Marine Stewardship Council (MSC) and some examples of profit oriented social enterprises are
VIEW DOCUMENT
1044 words - 5 pages
The Business Environment
Michelle Lennon
Mrs. Hayes
BUS-100-1128-001
November 1, 2012
Business plays a major role in the economy today, simply because we are surrounded by growing businesses, ventures, and reproduction of business that takes place on a daily basis. With the recent clash in our economy with people losing their jobs, houses going into foreclosure, people filing for bankruptcy, etc. it has taken a toll on a lot of families as well as the nation.
In today’s economy we have the roles of for-profit and non-profit organizations within the economy. To start off what is a for-profit and non-profit organization? For-profit organization is an organization is an
VIEW DOCUMENT
650 words - 3 pages
budgeted production of 10,000 units. The actual fixed production overhead cost was £90,000.
* Actual production and sales volumes were as follows:
| Units |
Production | 12,000 |
Sales | 11,500 |
*
There was opening inventory of 1,000 units at the start of the period.
* Calculate the profit for the period for the business using absorption costing.
| £ | £ |
* Sales | | |
* Less | * Cost of sales | | |
* | * Opening inventory | | |
* | * Variable production costs | | |
* | * Absorbed fixed production costs
VIEW DOCUMENT
1697 words - 7 pages
Executive Summary
The Panera Bread Company was the first fast food company that provided freshly baked goods every day and offered a comfortable environment where people could enjoy real food. Their business model as a result, was to provide high quality meals in an environment that customers would willingly pay for at a price that can benefit the company financially. The company saw great success since their opening in 1993.
As recently as 2007, however, the company began facing multiple challenges. The transaction growth was starting to decline and profit margins, although still high, were showing a slight decrease from what they were over the previous two years. As 2007 was coming to
VIEW DOCUMENT
1694 words - 7 pages
protection, elbow pads, goggles and heavy duty clothing in both events ranked by the NBA
Issues:
Whether you were correct in deducting the total expenses incurred from your bicycle racing activities as a deduction for AGI against the prize money and sponsorship income received from races.
Rule:
Section 183(a) provides generally that, if an activity is not engaged in for profit, no deduction attributable to such activity shall be allowed except as provided in section 183(b). Section 183(c) defines an "activity not engaged in for profit" as "any activity other than one with respect to which deductions are allowable for the taxable year under section 162 or under paragraph (1) or (2) of
VIEW DOCUMENT
973 words - 4 pages
Inn-Room decides to implement the newly proposed discount, what will be the additional profit contribution from an increae in sales?
If Inn-Room decides to implement the newly proposed discount, what will be the cost of the marginal investment in accounts receivable?
If Inn-Room decides to implement the newly proposed discount, what will be the marginal benefit of reducing the bad debt expense?
If Inn-Room decides to implement the newly proposed discount, what will be the marginal cost of paying the cash discount to early paying customers?
If Inn-Room decides to implement the newly proposed discount, what will be the net profit from implementing the proposed plan?
What additional
VIEW DOCUMENT
1512 words - 7 pages
Alternative legal structures for value-driven nonprofits
Legal structures define how businesses will be held accountable in the court of law.
Nonprofits are entirely different structure than pure for profit organizations. As time goes on,
more and more private corporations are becoming socially aware and wanting to combine profit
with some product or service that simultaneously benefits society. Nonprofit organizations exist
as executors of a socially beneficial service or product. This paper will discuss the benefits and
disadvantages that both of these structures face. Additionally, this paper will examine benefits of
the nonprofit sector’s consideration of newer legal
VIEW DOCUMENT
543 words - 3 pages
When looking for financial assistance, remember that there are differences between grants and loans. You are required to pay back a loan, often with interest. You are not required to pay back a grant, but there are very few grants available to individuals. Most grants are awarded to universities, researchers, cities, states, counties, and non-profit organizations. You can search for these type of grants on When looking for financial assistance, remember that there are differences between grants and loans. You are required to pay back a loan, often with interest. You are not required to pay back a grant, but there are very few grants available to individuals. Most grants are awarded to
VIEW DOCUMENT
623 words - 3 pages
The purpose of this case is to illustrate the importance of understanding cost behavior in calculating the profit/contribution of the Craddock Cup. Within this context, the case asks whether the tournament should be continued, expanded or dropped. In addition, the case provides a vehicle to discuss allocation procedures and the concept of sunk costs. Finally, the case furnishes an opportunity to develop cost-volume-profit analysis within the context of relevant costs and revenues.
Questions:
1. In determining whether to keep or drop the Craddock Cup, review in detail the overhead expense allocations currently used by the CYSL. Should the overhead allocations be revised, eliminated or
VIEW DOCUMENT
583 words - 3 pages
One of the most important objectives of any business is profit maximization. The concept aids in the survival of the business, guarantees an increase in the return of its shareholders, and also prevents insolvency from occurring. In order for a business to understand profit maximization it must first comprehend the relationship between marginal revenue and cost.
For a company to properly understand marginal revenue and cost, it would have to determine how it is related to total revenue (TR) and total cost (TC). The TR is the total amount of money that a firm gets from, selling their products; the calculation to determine total revenue is TR=price X quantity. Total revenue is not
VIEW DOCUMENT
1498 words - 6 pages
*
Fred Company sells product BB for $60 per unit. The cost of one unit of BB is $54, and the replacement cost is $52. The estimated cost to dispose of a unit is $12, and the normal profit is 50%. At what amount per unit should product BB be reported, applying lower-of-cost-or-market? |
Selected Answer: | $48. |
Correct Answer: | $48. |
|
* Question 2
The following information is available for October for Albert Company.
Beginning inventory $250,000
Net purchases 750,000
Net sales 1,500,000
Percentage markup on cost 66.67%
A fire
VIEW DOCUMENT
1177 words - 5 pages
1. The responsibility structure of the Birch Paper Company and all of its divisions is an Investment Centre. In the case it is stated that “for several years, each division had been judged on the basis of its profit and return on investment.” This verifies that BPC’s structure is an investment centre, since an investment center has a manager who is responsible for the division’s profits as well as its invested capital.
However, as stated in class, “some organizations use the terms profit centre and investment centre interchangeably,” this is evident by the managers of BPC’s divisions continually stressing profit as a major concern. As James Brunner, Thompson’s division manager
VIEW DOCUMENT
