The following data refer to various annual costs relating to the inventory of a single-product company: Unit transportation-in on purchases Storage per unit Insurance per unit Annual interest foregone from alternate investment of funds Annual number of units required P0.20 0.12 0.10 P1,500 10,000

Q: What is the Equivalent Annual Operating Cost?

A: Equivalent annual cost (EAC) is the yearly expense of owning, managing, and operating an asset over…

Q: How I can calculate the gross margin?

A: Gross margin formula Sale-Cost of goods sold

Q: What is a self-imposed budget?

A: Budget:   It is a statement of estimated revenue and expenditure for a specific period.

Q: What is the Times-interest·earned ratio?

A: It is important to analyze whether a company has ability to pay off its debts. Means, it is…

Q: What is the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: What does the annual effective yield represent?

A: Yield refers to the rate of return that is received by the owner of the security who has invested in…

Q: How is Gross Margin % calculated?

A:

Q: What is the annual profit?

A: The cost-volume profit analysis deals with the cost of the product and the profit generated with the…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: What are the three types of investment flows associated with buying apiece of equipment?

A: Investing Activities: It denotes to the actions carried out by a corporation for attainment of…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: What is the difference between g Operating Margin and Net Margin?

A:

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: VARIABLE COST PER UNIT What is the formula or method for finding the variablel cost per unit?

A: Variable cost is varies with number of units produced. Variable cost per unit is constant and total…

Q: When is the Times-Interest-Earned Ratio?

A: The TIE is a calculation of a firm's ability to reach its debt liability based on its current…

Q: How can we calculate ownership (capital) cost, annual operating cost, and equivalent annual cost?

A: Ownership cost is the cost of owning a particular asset/equipment and is usually the purchase price…

Q: How to calculate gross margin and gross sales

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: What is gross profit? How do you calculate it?

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: What does period cost include

A: Period costs are the expenses which are typically related to passage of time and not to any…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: What is the gross profit and how do i calculate it

A: Manufacturing department profit is also known as gross profit. This profit includes only costs…

Q: What would the gross profit on this be?

A: Gross profit: The difference between the sales and the cost of goods sold is called gross profit.…

Q: What are the Relationship between Yield and Time?

A: Yield refers to the measurement of returns of an investment in a period of time. It measures the…

Q: What is the margin of safety in dollars? What is the margin of safety percentage?

A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…

Q: How do you solve the gross margin and Net income?

A: The income statement is one of the major financial statements prepared to outline and document the…

Q: How do I calculate the gross margin value under the FIFO, LIFO, and weighted average methods.

A: Gross Margin refers to the profit earned  during an accounting period. Therefore, it is also called…

Q: What is the process of computing the required annual savings to cover the capital and operating…

A: Answer: NPV is a capital budgeting technique used as it is taken as PV (cash inflows) and PV (cash…

Q: pletable amount by the estimated life in terms of units of output?

A: Depletable amount refers to the amount left after salvage value from the total cost of an intangible…

Q: Then, how about the fixed cost and the shipping cost?

A: Special Order: A non-routine or one-time sales order that falls beyond the typical parameters of a…

Q: What makes up gross income?

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: What Is load percent?

A: Load Percent: It is the percentage of load at which the system is operating. The total load is given…

Q: What is the Total equivalent annual cost?

A: Equivalent annual cost (EAC) is the annual cost of claiming, overseeing, and supporting an asset…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.