The return on investment of the company Timberline marble which has owner’s equity of $ 434 , 210 , net sales of $ 743 , 500 , operating expenses are $ 175 , 410 , and cost of goods sold is $ 489 , 560 .

Question

Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner wants to use minimax regret. How many lots should the manager order?

Answer 1

Question

Chapter 15.III, Problem 30RE

To determine

To calculate: The return on investment of the company Timberline marble which has owner’s equity of $434,210, net sales of $743,500, operating expenses are $175,410, and cost of goods sold is $489,560.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner wants to use minimax regret. How many lots should the manager order?

Choosing between credit cards. Gabriel Clark recently graduated from college and is evaluating two credit cards. Card A has an annual fee of $75 and an interest rate of 9 percent. Card B has no annual fee and an interest rate of 16 percent. Assuming that Gabriel intends to carry no balance and pay off his charges in full each month, which card represents the better deal? If Gabriel expected to carry a significant balance from one month to the next, which card would be better? Explain. Calculating credit card interest. Ruby Wilson, a student at State College, has a balance of $380 on her retail charge card; if the store levies a finance charge of 21 percent per year, how much monthly interest will be added to Ruby’s account?

interpret Company A and Company B's results below in terms of the factors that impact Cost Volume Profit Analysis (CVP). Why does Company B have the greater degree of operating leverage? As a manager, why is operating leverage an important concept? Company A Company B Sales (10,000 units times $26) $260,000 Sales (10,000 units times $32) $320,000 Less Variable expenses (10,000 units $16) 160,000 Less Variable expenses (10,000 units times $20) 200,000 Contribution margin (a) 100,000 Contribution margin (a) 120,000 Less Fixed expenses 80,000 Less Fixed expenses 100,000 Net operating income (b) 20,000 Net operating income (b) 20,000 Degree of operating leverage (a divided by b) 5.0 Degree of operating leverage (a divided by b) 6.0