William Burris invested $100,000 in an Australian-based franchise, Rent Your Boxes, purchasing three territories in the Washingtonarea. After finding out the company had gone bankrupt, he rallied 10 other franchisees to join him and created a new company, RentOur Boxes. Assume Rent Our Boxes had net income of $39, 902 with net sales of $296,585.What was its profit margin on net sales? (Round your answer to the nearest hundredth percent.)

Answered: William Burris invested $100,000 in an…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3MAD: Papa Johns International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45...

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f) JeansCo is a major player in the Jean industry in Estonia. The sold $10,070,000 worth of their Premium brand, 80,600 pairs of the $50 priced Kool brand and 70,000 of the $30 Basic brand. If the entire industry is worth $27,000,000-how large is their market share in revenue sales? _______________ •g) What is the expected market share (based on units) for a company that expects to sell 28 of the industries 40 nuclear power plants in the world? _____________________ •h) What share of the beer market industry (based on sales) does the Beer Store have if the sold $960,000,000 worth of beer and the entire industry is valued at $1.2 billion? ___________________
Joe Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc. to dispense frozen yogurt products under the name The Yogurt Place. Swanson has assembled the following information relating to the franchise: a. A suitable location in a large shopping mall can be rented for $5,480 per month. b. Remodelling and necessary equipment would cost $337,500. The equipment would have a 15-year life and an $10,500 salvage value. Straight-line depreciation would be used. c. On the basis of similar outlets elsewhere, Swanson estimated that sales would total $440,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $143,500 per year for salaries, $5,600 per year for insurance, and $30,500 per year for utilities. In addition, Swanson would have to pay a commission to The Yogurt Place of 12.5% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. Deduct:…
Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar year: Operating income: $66,880 Invested assets: $167,200 Sales: $836,000 What is OMDS' return on investment? For percentages, please enter your answer as a decimal (i.e., 20% is 0.20). For dollar amounts, please provide your answer to two decimal places (i.e. $3.00 is 3.00)
Chinglish Dirk (A), Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 2,500 units Chinglish calculates its profit per container as follows (all values in British pounds) Corporate management of Torrington Edge is considering repositioning profits within the multinational company What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments? Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table: (Round to the nearest…
Global Athletes Pty Ltd is a large sports goods retailer. It purchases ‘sweet spot’ badminton set rackets for $110 each from Sport Australia Pty Ltd, a large manufacturer of sports products. Sport Australia has an annual turnover of more than 30 Million and has an accruals basis accounting system. Global Athletes Pty Ltd plans to sell the badminton set rackets at a 200% mark-up to its customers. In January last year, it purchased 100 racquets. However, in April, it discovered that 10 of these racquets had design faults, and it returned them to the manufacturer and obtained a full refund. Explain the GST consequences of this arrangement for both parties.
es Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following information relating to the franchise: a. A suitable location in a large shopping mall can be rented for $4,400 per month. b. Remodeling and necessary equipment would cost $372,000. The equipment would have a 10-year life and a $37,200 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $470,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $87,000 per year for salaries, $5,200 per year for insurance, and $44,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 12.5% of sales. Required: 1. Prepare a contribution format income…
Denver, Incorporated, has sales of $13 million, total assets of $11 million, and total debt of $6.4 million. Assume the profit margin is 6 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Net income b. ROA % c. ROE %
A. A and B established a Mudaraba company where B is the Mudarib, find a) if profit after first year was USD 900,000:, How much A and B will get if profit sharing ratio between them is 75:25? b) if losses after first year was USD 10,000 How much share on this losses?
Q2. Create an income statement in good form for the company based on the information given below: Based on the final equity agreement of investment between the Dragon and Michael Petcherski founder of the dehydrated apple snacks, Dragon agrees to offer 300K in exchange of 50% of the company's equity. The company first year Sale total of $850,000 and assumed that $460,000 of the sale is coming from the apple product. Profit margin: globally, the company made the total of 65% on gross margin. The founder invested 15-20% on promotion expense before the 65% of the sale Assume a tax rate of 15%.
Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar year: Operating income: $66,880 Invested assets: $167,200 Sales: $836,000 What is OMDS' investment turnover? For percentages, please enter your answer as a decimal (i.e., 20% is 0.20). For dollar amounts, please provide your answer to two decimal places (i.e. $3.00 is 3.00)
A and B established a company, if profit after first year was USD 900,000 find below: How much A and B will get if profit sharing ratio between them is 75:25?
Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000 00per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @P12,000.00 each unit. What was her profit or loss? Compute the following requirements: d Return on Investmentc.Net profit margin ratea Gross profit rateb. Operating profit margin rate

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