Profit margins are found by dividing net income by net sales. Huffing Trucking’s return on assets was 2.2%. This was calculated by dividing net income by the average assets and gives a general measurement
The second component is the cost of sales which includes the costs directly linked to providing the trade. For example this is the cost of buying the products. The formula for cost of sales is opening stock + purchases – closing stock. According to business alpha the cost of sales is 2,647,000. The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover.
1. Provide the definitions of throughput, inventory and operational expense given in The Goal. How do they compare with the traditional definitions? Do you find them useful, and why? Throughput is the rate at which the system generates money through sales while inventory is all the money that the system has invested in purchasing things which it intends to sell.
a. Opportunities: investment opportunities; enhancing revenues (global branding, marketing flexibility, advantages of scale and scope); reducing operating costs (low cost materials, labor, flexibility in global site selection, flexibility in sourcing and production, economies of scale and scope, economies of vertical integration); multinational business strategy (following the customer, leading the customer, following the leader, going local) b. Risks: differences in legal, accounting, and tax systems; differences in personnel management (i.e. HR practices); differences in marketing; differences in distribution; differences in financial markets; differences in corporate governance 2. Given the following Euro to $ Exchange rate of 1.46, what is the information contained in this quote?
The first table shows the capacity of the production line along with the demand per warehouse. The second table displays the delivery expenses of sending the manufactured goods from each manufacturing facility to individual warehouses. The chart takes a gander at the warehouse sales needs and additionally, the expense to ship there from every manufacturing facility. It then creates a financially effective delivery plan to distribute manufactured goods with least possible transportation expenses and fulfill demands of those stockrooms initially. It then allots surplus goods to alternative stockrooms that devour increased shipping expenses.
Running head: INTERNATIONAL PAPER International Paper ECO561 / Economics International Paper Introduction Identify and Justify Macroeconomic Measures for Pricing and Output The economy is measured based on annual total output of goods and services and is called the gross domestic product or GDP. (McConnell, 112) Additionally the GDP shows what each sector or industry pays for the goods and services it receives. Based on data provided in the Bureau of Economic Analysis’ Industry Economic Accounts, we know that the gross output for the motor vehicle industry is significantly higher than Big Drive Auto’s output. (www.bea.gov) There are several different factors that could impact why Big Drive is lower than the national average. These include potential differences such as the amount of local competition, the local economy, and possible higher unemployment rates all of which lead to less disposable personal income.
What theory of profit best reflects the performance of the plasma screen makers? 2 To reduce Agency Problems, executive compensation should be designed to: Correct Answer: create incentives so that managers act like owners of the firm. 3 Economic profit is defined as the difference between revenue
Profit Maximization is the process that a firm uses to establish where the best output and price levels are, in order to maximize its return. There are two primary methods that can be used to establish profit maximization. One method is the Marginal Revenue minus the Marginal Cost (MR-MC) method. When utilizing this method economists assume that profit would be at its highest when MR and MC are equal, which denotes that for every item made MP=MR-MC. When / if MR is higher than MC then MP would result in a profit for Company A.
While in her mother’s eyes, she only supported her daughter and craved the absolute best for her child. Schwind-Pawlak presents this argument poorly due to her change of heart towards the end of the essay. She does not stick to her beginning argument which causes the opposition to lack stability. The two authors support their arguments by providing evidence. The supporting evidence of the two essay’s help reveal the hardships teenagers face while dealing with their parents.
In 2005, Steve Jobs gave the commencement speech to a multi-cultural graduating class at Stanford University. He appears to be a Theory Y leader who makes “a call to action rather than [providing] a comforting reassurance,” to fresh graduates (Jezebel). He urges his audience to use their time and knowledge idiosyncratically because their unique ways can open up limitless possibilities to success. In order to effectively encourage them to pursue their dreams, Jobs uses his imagination, passion, and persistence to share his struggles rather than, bragging about his achievements and success. From the very beginning, Jobs tells the anxious students to loosen up by saying, “Today, I want to tell you three stories from my life.