Reference no: EM132509907
The Burger Division of Good Meat Company reported the following results for 2020:
Sales $800,000
Variable costs 420,000
Controllable fixed costs 100,000
Average operating assets 4,000,000
Management is considering the following independent alternative courses of action in 2021 in order to maximize the return on investment for the division.
1. Reduce controllable fixed costs by 50% with no change in sales or variable costs.
2. Reduce average operating assets by 30% with no change in controllable margin.
3. Increase sales $200,000 with no change in the contribution margin percentage.
Required
Question a) Calculate the return on investment for 2020
Question b) Calculate the expected return on investment for each of the alternative courses of action
|
What is the price of bob inc stock today
: Those dividends are expected to grow at a constant rate of 4% indefinitely. What is the price of Bob's Inc.'s stock today if the cost of capital is 12%?
|
|
Find what must the expected return on the stock be
: The expected return on the market is 14.72 percent, and the risk-free rate is 4.65 percent. What must the expected return on this stock be?
|
|
What is the amount of supplies
: During March, the company's activity was actually 240 diving-hours. In the flexible budget, what is the amount of supplies
|
|
Determining the yield to maturity-iris corp
: Iris Corp issued bonds with a coupon rate of 15%, pay coupons annually, have 6 years remaining to maturity, and are currently priced at $950 per bond.
|
|
Calculate the expected return on investment
: Calculate the expected return on investment for each of the alternative courses of action. The Burger Division of Good Meat Company reported
|
|
Reporting to co-CEO David Gilboa
: You work as a communication specialist at Warby Parker, reporting to co-CEO David Gilboa. Gilboa characterizes the report as a "public business plan,
|
|
What is the rule on sec ethics
: Do you think it's ethical for Company A to sponsor Company B (Company A's CEO owns 20% of Company B)? What's the rule on (SEC, Ethics, Corporate Governance)
|
|
What is the companys excess of cash available
: The company's beginning cash balance for the upcoming fiscal year will be $69,200. What is the company's excess (deficiency) of cash available over disbursement
|
|
Venture capitalist has expressed interest in potentially
: A venture capitalist has expressed interest in potentially funding new product and has asked for presentation of your business plan for innovative product
|