The following information is available for Alibaba Auto Šales: Average operating assets Controllable margin Contribution margin Minimum rate of return P800,000 80,000 200,000 8%

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: What do we mean by "capital costs," how do we explain them, and how are they different from…

A: There are different types of cost namely capital cost and another one is operational cost.Capital…

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: Companies that use OSD can deduct the cost of sales or the cost of services. Is it true or false

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: The lessor’s initial direct costs often are substantial. What are initial direct costs?

A: The costs which are associated directly with originating a lease and are essential to acquire the…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: Which of the following costs is a nonlease component for the lessee? Group of answer choices taxes…

A: The objective of the question is to identify which of the given costs is considered a nonlease…

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: How can we calculate effective rent?

A: In brief, the net effective rent is determined by taking the full concession sum, dividing it by the…

Q: What is the difference between a Moving Average Price and a Standard Price?

A: A Moving Average Price (MAP) is a method of calculating the cost of goods sold by averaging the…

Q: e and net revenue increase but net profit margin decrease and net revenue increase, net profit…

A: The Net Profit Margin (also known as "Profit Margin" or "Net Profit Margin Ratio") is a financial…

Q: Which of the following is subtracted from Gross profit to arrive at Operating income

A: Introduction:- Operating income can be calculated by deducting the cost of goods sold and operating…

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

Q: can you now calculate the gross profit ?

A: Gross profit can be defined as the net sales revenue earned by business over a particular period of…

Q: What is the meaning of capital costs, how are they described, and how are they different from…

A: Capital costs are one-time expenses for the creation, improvement, or purchase of assets like…

Q: Why do you think factoring commission is collected upfront ?

A: By factoring, a company can obtain the short-term cash it needs by selling its accounts receivable…

Q: What is break-even analysis and expenses concepts?

A: Break-even analysis is a financial analysis method that assists firms in determining the point at…

Q: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: Question. What are Operating and non-operating expence?

A: Expenses refer to the outflow of money for the payment of any product or service used in the course…

Q: Why is the basic earning power ratio useful?

A: Basic earning power ratio shows the relationship between earnings before interest and taxes and…

Q: What is the relationship between revenue and net income on the Income Statement? As contribution…

A: Revenue represents the total income generated by a company from its primary operations, such as…

Q: The cost of PPE includes which of the following : Its invoice price, less any cash discount for…

A: The cost of PPE includes all those expenses which are incurred directly on the PPE for making that…

Q: What are the short and longer consequences of recognising cable revenue costs as capital spending

A: A company's capital expenditures (CapEx) are cash outlays for the purchase, improvement, and…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: What is the gross profit declined due to increase in cost in the amount?

A: Gross profit refers to the profit calculated after considering the costs associated with the…

Q: When might a reduction in operating expense as a percentage of sale denote a short term gain or the…

A: Operating expenses are those expenses which are related to the operations of the business. It…

Q: How should managers consider income tax issues when choosing a transfer-pricing method?

A:

Q: Why is there a need for reducing accruing expenses?

A: Accruing expenses are also called as accrued expenses. These are the expenses for which the company…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net…

A: Solution Concept Let us look at the formula used Gross margin     = sales – cost of goods sold Net…

Q: What will be the revenue generated at the break-even point?

A: Break even point is a point wherein the firm does not earn any profit nor incurs any loss.

Q: How do you calculate the breakeven point in revenues?

A: Break-even point is the level at which profit is zero; that is, at the Break-even level, expenses…

Q: What is the formula for gross profit

A: Gross profit is an excess of revenue over the cost of goods sold.it can be calculated by deducting…

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…