Both Company P and Company Q will need to achieve a profit margin of 10% to generate a 20% return on investment based on the given sales and average operating asset data.
To calculate the margin required for each company to generate a 20% return on investment, we need to use the formula:
ROI = Margin x Asset Turnover
Where ROI is the return on investment, Margin is the profit margin, and Asset Turnover is the ratio of sales to average operating assets.
Let's assume that Company P has sales of $1,000,000 and average operating assets of $500,000, while Company Q has sales of $2,000,000 and average operating assets of $1,000,000.
For Company P:
ROI = 20%
Asset Turnover = Sales / Average Operating Assets = $1,000,000 / $500,000 = 2
Therefore, Margin = ROI / Asset Turnover = 20% / 2 = 10%
So, Company P will need to earn a profit margin of at least 10% to generate a 20% return on investment.
For Company Q:
ROI = 20%
Asset Turnover = Sales / Average Operating Assets = $2,000,000 / $1,000,000 = 2
Therefore, Margin = ROI / Asset Turnover = 20% / 2 = 10%
So, Company Q will also need to earn a profit margin of at least 10% to generate a 20% return on investment.
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Social business responsibility means that one company responsible for their product or service. Triple Bottom Line is one of the theories in business sphere. It means that one company is a member of the moral community, so it gets social responsibilities. Triple Bottom Line includes economic sustainability, social sustainability and environmental sustainability. If all three components are executed , then the business is developing successfully.
A. The bank bears all the risk of the loan.
B. The bank charges more for poor credit scores.
C. The bank bases higher interest rates on market conditions.
D. The bank raises rates unfairly for unsecured loans.
a) A rise in the cost of raw materials (but not machinery) raises the cost.
b) The good becomes cheaper to produce.
c) The good becomes more expensive to produce.
d) It does not have any effect on the cost of the good.
2.
What does new technology generally do to production?
a) It lowers cost and decreases supply.
b) It lowers cost and increases supply.
c) It increases cost and decreases supply.
d) It has very little effect on production.
Could you please help me with these questions?
Answer:
b) It lowers cost and increases supply.
Explanation:
b. can go up or down based on factors in the credit market.
c. will stay the same during the entire term of the loan.
d. transfers part of the interest risk from the lender to the borrower.
Which of the following does NOT appear on a credit report?
a. debt
b. condition of debt
c. risk level rating
d. photo of debtor