BUSINESS COLLEGE

Oriole Company has a new product going on the market next year. The following data are projections for production and sales: Variable costs $430000 Fixed costs $450000 ROI 16% Investment $2200000 Sales 200000 units What is the markup percentage

Answers

Answer 1

Answer:

Answer:

The markup percentage is 40%

Explanation:

The computation of the markup percentage is shown below:

Markup percentage is

= Return on investment ÷ Total cost

= ($2,200,000 × 16%) ÷ ($430,000 + $450,000)

= $352,000 ÷ $880,000

= 40%

Hence, the markup percentage is 40%

We simply applied the above formula

And, the same is to be considered

Sales would be ignored in this case

Related Questions

Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the company can sell its entire supply domestically for $170. The U.S. tax rate is 40 percent. Alternatively, Alpha can ship the circuit board to its division in Germany, to be used in a product that the German division will distribute throughout Europe. Information about the German product and the division’s operating environment follows.Selling price of final product: $360Shipping fees to import circuit board: $20Labor, overhead, and additional material costs of final product: $115Import duties levied on circuit board (to be paid by the German division): 10% of transfer price German tax rate: 60%Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.Required:1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?3. Assume that the German division can obtain the circuit board in Germany for $155.a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
Sarah and Wei have an opportunity to buy a large parcel of land on the Willamette River, just two miles south of Salem. They want to build an amusement park on the land. Sarah approaches you and says, "Hey, I know you took that BA 333 class, so maybe you can help me figure out what to do. Wei and I need a lot of money to start up our amusement park and buy the land we want, and we're a little nervous about getting sued if someone gets thrown out of our roller coaster. What kind of business do you think we should we set up? We were thinking maybe we could just be partners. We'd prefer not to have anything formal written down--we think that might be bad for our friendship. What's your advice?"Draft an answer to Sarah and Wei and include it in your document. Your answer should include: 1) your recommendation for the best entity choice; 2) a complete explanation of why this is the best option; 3) a secondary recommendation, in case Sarah and Wei don't like your first option; 4) an explanation as to why this is your second choice (i.e., compare to your first choice and explain why this is not as good, but still an acceptable option).
If the tax elasticity of labor supply is 0.16, by what percentage will the quantity of labor supplied increase in response to Instructions: In part b, enter your response as a percentage rounded to one decimal place. a. A $500 per person income tax rebate check? A 4.5% increase A 2% increase A 1.5% increase No increase b. A reduction of 5 percent in marginal tax rates?
Pharoah, Inc., paid a dividend of $4.25 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 17.0 percent, what is the current value of the stock
If a company's revenue is $530,000, profit before taxes is $98,000, and product costs are $390,000 then:a)The company's gross margin totals $98,000 b)The company's period costs total $140,000. c)The company's period costs cannot be determined d)The company's contribution margin totals $140,000 e)The company's gross margin totals $140,000

A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $7.55. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is:

Answers

The net profit or loss from buying the call should be $3.17 and -$7.55.

Calculation of stock price per share:

here, a Stock price higher than the strike price option will be exercised.

Net profit = Stock price - Strike price - Option premium

= $110.72 - $100 - $7.55

Net profit = $3.17

Stock price is lower than the strike price option will fail.

Net profit = Stock price - Strike price - Option premium

= 0 - $7.55

Net profit(loss) = -$7.55

Learn more about net profit here: brainly.com/question/24364525

Which of the following changes would increase structural unemployment? Select one: a. An increase in the speed that firms and potential workers exchange information
b. A recession caused by a drop in total spending
c. A decrease in the minimum wage
d. Increased globalization that moves the economy from a manufacturing-based economy to a more service-based economy

Answers

Answer:

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

Explanation:

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

As manufacturing will decrease, the number of jobs will decrease drastically because the number of industries will become small.

A local bank advertises the following deal: "Pay us $100 at the end of each year for 12 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever." a. Calculate the present value of your payments to the bank if the interest rate is 4.00%.

Answers

Answer:

Present value of payments to the bank=938.51

Explanation:

The present value of the payment to the bank are an ordinary annuity i.e equal payments made at the end of each year for 16 years.

The Present value of an ordinary annuity is calculated as follows:

$Present value =PMT*([1-(1+i)^-^n])/(i)$

where PMT is the annual payment made at the end of each year=$100;

i is the interest rate or discount rate = 4%,

n=the number of years the periodic payment of 100 is to be made=12

Present value of payments to the bank = $100*([1-(1+0.04)^-^1^2])/(0.04)$ = 938.51

Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price? Select one: a. Consumers, who purchase more units of the product than they did before the price support program was implemented

b. Taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place

c. The government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Answers

Answer:

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Explanation:

A government price support program is when the government impose a price limit on a product to control the price of the product i.e price floor, and also the purchase of any surplus. The price floor and the purchase of any surplus for the product encourages the producers to produce more of the product.

Since price floor must be higher than the equilibrium price for it to be effective, the producers of the agricultural product earn more by selling in units and also earn more for selling any surplus to the government.

Which of the following management actions is permissible during a union certification election? Promising benefits to employees if they reject the union Requiring all employees to attend "captive audience" speeches in the company auditorium regarding the union organizing effort Requiring small groups of employees to meet with management in a supervisor’s conference room to discuss the organizing effort Asking employees in advance of the election how they feel about the union

Answers

Answer:

Requiring all employees to attend “captive audience” speeches in the company auditorium regarding the union organizing effort

Explanation:

In simple words, union certification election refers to the electoral process under which the labor force of an organisation chooses its leader for a fixed period of time as determined by the rules. This process is usually seen in large organisations where a thousands of labor workforce is included.

Just like any other process, in these elections also the candidates are supposed to present themselves against the voters and tell them their ideas and the works they are going to perform.

Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)Required:

What is her after-tax rate of return for the City of Heflin bond?
How much explicit tax does Melinda pay on the City of Heflin bond?
How much implicit tax does she pay on the City of Heflin bond?
How much explicit tax would she have paid on the Surething Inc. bond?
What is her after-tax rate of return on the Surething Inc. bond?

Answers

Answer:

What is her after-tax rate of return for the City of Heflin bond?

Melinda's after tax rate of return for the City of Heflin bonds = $200,000 x 6% = $12,000. Interest revenue from city bonds is not taxed.

How much explicit tax does Melinda pay on the City of Heflin bond?

How much implicit tax does she pay on the City of Heflin bond?

$4,000. The tax difference between the yields of the city bond vs Surething bond.

How much explicit tax would she have paid on the Surething Inc. bond?

($200,000 x 8%) x 25% = $4,000

What is her after-tax rate of return on the Surething Inc. bond?

($16,000 - $4,000) / $200,000 = $12,000 / $200,000 = 6%

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The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight's beginning inventory for 2015 is 18 comma 000 trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced

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