sales and average operating assets for company p and company q are given below: what is the margin that each company will have to earn in order to generate a return on investment of 20%?

Answers

Answer 1

Answer:

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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if the price elasticity of demand for food is less then 1 (inelastic), an increase in supply due to an improvement in technology will result in a ______ price and _______ in total revenue.

Answers

Answer:

... an increase in supply due to an improvement in technology will result in a lower price and decrease in total revenue.

Explanation:

Price Elasticity of Demand = % change in quantity demanded / % change in price

When elasticity < 1, % change in price will be larger than % change in quantity demanded.

Increase in supply means increase in quantity to be sold. There will be a larger decrease in price (Normally when price rises quantity demanded falls and vice versa)

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More companies are posting job advertisements on industry specific sites, because the applicants are usually more qualified.(A) True(B) False

Answers

Answer:

True

Explanation:

Industry specific sites usually consumed/visited by people who has keen interest and caliber in the industry. When posting the jobs on these type of sites, the probability of the company selecting candidates with higher skill set in the related industry tend to get higher as compared to posting it in normal job posting sites. Well you always seek for a person who has better aptitude and better understanding of things. A person belonging from industry will surely be having all these good qualities.

Answer:true

Explanation:

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For the insured, insurance is fundamentally a form of:a. tax
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c. profit
d. security

Answers

For the insured, insurance is fundamentally a form of security or protection from financial loss. The answer among the options given above is letter "D" or "D. security". I hope this helps you on your assignment. You're welcome!

The more resources you have to choose from during an open book test, the better you will do on the test because more information is available to you.a. True
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Answers

The correct answer is letter A, true. The statement above is true because providing an open book for a test is a good way for looking for answers that are available from the content being presented. This is usually an appropriate form of test when essay type of questions are presented to the students. They can be able to search for keywords from their books and construct the thoughts to answer and supply the question.

Answer:the answer is False.

Explanation:

I just took the test

Examples of elastic and inelastic goods... ( at least 20 examples) URGENT..............

Answers

non-elastic:
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Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its output to m and 30% toa. sector m sells 30% of its output to e, 50% to a, and retains the rest. sector a sells 15% of its output to e, 30% to m, and retains the rest.

Answers

Answer:

(1) Pe =0.3Pm + 0.15 Pa

Pm = 0.7Pe + 0.2 Pm + 0.3 Pa

Pa = 0.3 Pe + 0.5Pm +0.55 Pa

(2) The free variable Pa = 100

Explanation:

Solution

We create a table of outputs using the given percentages economy distribution

Energy Manufacturing agriculture Purchased by

0 0.3 0.15 energy

0.7 0.2 0.3 manufacturing

0.3 0.5 0.55 Agriculture

Let Pe Pm, Pa represent the prices for each sector

We then create an income equation using the expenses of the table above

Now,

Pe =0.3Pm + 0.15 Pa

Pm = 0.7Pe + 0.2 Pm + 0.3 Pa

Pa = 0.3 Pe + 0.5Pm +0.55 Pa

Note: Kindly find an attached copy of part of the solution to the given question and complete question to of this exercise below

Final answer:

The question revolves around the concept of interdependence in an economy, involving the flow of goods and services amongst energy, manufacturing, and agricultural sectors. Each sector sells a calculated percentage of its output to the others, with any unsold output retained for internal use.

Explanation:

The question primarily deals with the concept of interdependence amongst different sectors in an economy, specifically within context of energy (e), manufacturing (m), and agriculture (a). The way these sectors interact with each other is through buying and selling their output. For instance, sector e sells 70% of its output to m and 30% to a. This suggests that e is providing input goods that are likely necessary for m and a's operations. Similarly, for the other sectors. The percentage not sold to other sectors is the retained output, contributing to their own reserves or consumption.

This kind of model is used to understand the flow of goods and services among sectors and the overall economic system.

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