Problem 3-21 Profit Margin [LO4]In response to complaints about high prices, a grocery chain runs the followingadvertising campaign: "If you pay your child $7 to go buy $100 worth of groceries, thenyour child makes twice as much on the trip as we do." You've collected the followinginformation from the grocery chain's financial statements:SalesNet incomeTotal assetsTotal debta.(in millions)b.$700.024.5340.0210.0What is the profit margin for the child as a percentage of what they spend and theprofit margin for the store? (Do not round intermediate calculations and enter youranswers as a percent rounded to 2 decimal places, e.g., 32.16.)What is the store's ROE? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Child's profit margina. Store's profit marginb. Store's ROE%%%

Variables in the question:Child:If you pay your child $7 to go buy $100 worth of groceries then your…

Problem 3-21 Profit Margin [LO4] In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $7 to go buy $100 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements: (in millions) Sales Net income Total assets Total debt a. $700.0 24.5 340.0 210.0 What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the store's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Child's profit margin a. Store's profit margin b. Store's ROE % % %

Problem 3-21 Profit Margin [LO4] In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $7 to go buy $100 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements: (in millions) Sales Net income Total assets Total debt a. $700.0 24.5 340.0 210.0 What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the store's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Child's profit margin a. Store's profit margin b. Store's ROE % % %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 5-20 (Algo) Evaluating the Profitability of Services [LO5-2, LO5-3, LO5-4, LO5-5] Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.85 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (005) Miles…
EX 7-24 (Algo) Pizza Delivery Business; Basic CVP Analysis (LO 7-1, 7-2, 7-4) College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $63,000. The sales price of a pizza is $20, and it costs the company $10 to make and deliver each pizza. (In the following requirements, ignore income taxes.) Required: 1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas). 2. What is the contribution-margin ratio? Note: Enter your answer as a decimal. 3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. 4. How many pizzas must the company sell to earn a target profit of $69,000? Use the equation method. 1. Break-even point 2. Contribution-margin ratio 3. Break-even point sales dollars 4. Number of pizzas pizzas
Question 5-37
Please do not provide answer in image formate thank you.
3-27 CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours aday. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffeeto full meals. The average sales check per customer is $8.75. The average cost of food and other variablecosts for each customer is $3.50. The income tax rate is 36%. Target net income is $117,600.1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $117,600?3. Compute net income if the number of customers is 170,000.
EC 3 Question 3 Hometown Bakery sells three types of doughnuts: glazed, jelly, and cake. The following table shows the sales price and variable costs for each type. The bakery incurs $331,000 a year in fixed expenses. Assume that it sells 3 glazed doughnuts for every 1 jelly doughnut and every 1 cake doughnut. DOUGHNUT TYPE SALES PRICE VARIABLE COST Glazed $0.40 $0.29 Jelly $0.52 $0.49 Cake $0.47 $0.29 (a) How many doughnuts of each type will be sold at the breakeven point? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole, e.g. 5,275.) Jelly doughnuts Cake doughnuts Glazed doughnuts b. What amount of revenue would need to be generated by each type of doughnut for the company to earn $74,100 in operating income?
Javeu Umework1 Macy's was selling Calvin Klein jean shirts that were originally priced at $41.00 for $9.84. a. What was the amount of the markdown? (Round your answer to the nearest cent.) Amount of markdown 24 b. Based on the selling price, what is the percent markdown? Percent markdown
H5. Account
Problem 7-7 Comparing Costs of Credit Using Three Calculation Methods [LO7-2] You have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $700. Each store charges 24 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Finance Charge es Store A Store B Store C
Homework (Ch 06) 1. Individual Problems 6-1 Huiying has been selling 8,000 T-shirts per $11.00, she sold only 5,000 T-shirts. Which of the following best approximates the price elasticity of demand? -30 -2.5385 -2.3077 -2.0769 Suppose Huiying's marginal cost is $3 per shirt. Before the price change, Huiying's initial price markup over marginal cost was approximately- Huiying's desired r Since Huiying's initial markup, or actual ma the price was... than her desired margin, raising the price was....

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