Financial & Managerial Accounting: Information for Decisions w Access Card, 5th edition, ACC 211 & 212, Northern Virginia Community College
Financial & Managerial Accounting: Information for Decisions w Access Card, 5th edition, ACC 211 & 212, Northern Virginia Community College
5th Edition
ISBN: 9781259347641
Author: Ken W. Shaw, Barbara Chiappetta John J. Wild
Publisher: McGraw Hill Education
Question
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Chapter 12, Problem 10E
To determine

Cash Flow on Total Assets:

It is that ratio which indicates the position of company whether it is able to fulfill its obligation or not within the relevant time period. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

To identify: Cash flow on total assets ratio.

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U-Too Everwear Corporation can manufacture mountain climbing shoes for $31.15 per pair in variable raw material costs and $22.50 per pair in variable labor expenses. The shoes sell for $156 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,235,000. a. What were total production costs? b. What is the marginal cost per pair? c. What is the average cost per pair? d. If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? Provide answer
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Financial & Managerial Accounting: Information for Decisions w Access Card, 5th edition, ACC 211 & 212, Northern Virginia Community College

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