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##### Bonus Questions - Chapter 19 & 20

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Question;1.Saint Louis? Ice Cream;Company produces ultra-rich ice cream, which it sells in the Missouri area. Last year, it managed to exceed its target;return on investment (ROI) for the current fiscal year. The following results;were found on its financial statements;Gross;revenues;\$250,000;Total;assets;\$500,000;Gross;profits;\$100,000;Total;liabilities;\$200,000;Net;profits after tax;\$ 55,000;Owner?s;equity;\$300,000;What was;the actual ROI for the Saint Louis? Ice Cream Company?;a.;6.67;percent;b.;11;percent;c.;20;percent;d.;28;percent;e.;100;percent;2. Monthly output at Air;Stream Campers, Inc. changed from 24 to 25 tag-along campers, and the total;costs changed from \$8,000 to \$9,700. What;is the marginal cost for this company?;a.;\$1,200;b.;\$1,500;c.;\$1,700;d.;\$17,700;e.;\$22,700;3. An office supply store can;buy a desk for \$200. If the store owner;sells the desk for \$500, what is the markup based on the selling price?;a.;15;percent;b.;20;percent;c.;25;percent;d.;33;percent;e.;60;percent;4.An office supply store can buy a PC console for \$200. If the store owner sells the PC console for \$500;what is the markup based on the cost?;a.;15;percent;b.;20;percent;c.;40;percent;d.;60;percent;e.;150 percent;5. You are a new hire;in the Krispy Cr?me Donuts Marketing Dept.;The President has just asked you;What is Krispy Cr?me Donuts? market share of the U.S. Retail Coffee;Market. Using the below numbers, what;should you reply?;Market Definition;Total Coffee Sales;Krispy Cr?me Donuts Sales;Total;Coffee Market;\$8,000,000,000;\$80,000,000;U.S.;Retail Coffee Market;\$6,000,000,000;\$80,000,000;U.S.;Retail Ground Coffee Market;\$4,500,000,000;\$80,000,000;U.S.;Retail Caffeinated Ground;\$3,000,000,000;\$80,000,000;Coffee;Market;U.S.;Retail Caffeinated Ground;\$230,000,000;\$80,000,000;Coffee;Market in the Mid-Atlantic;Region;a.;1.0 percent;b.;1.3 percent;c.;1.8 percent;d.;2.7 percent;e.;32;percent;6. Executives of the Dell;Computer Company, Inc. have produced a new personal computer for the rapidly;expanding business student market. The;following cost information pertains to the new computer;Intel;Processor and mother board \$75 (Variable Cost);Monitor \$175 (Variable Cost);Assembly & testing (direct labor) \$150 (Variable Cost);Advertising and promotion \$500,000 (Fixed Cost);New machines and factory overhead \$400,000 (Fixed;Cost);Selling Price \$800;Calculate the break-even volume;in units.;a.;800 units;b.;1,056;units;c.;1,100;units;d.;1,900;units;e.;2,250;units

Paper#46471 | Written in 18-Jul-2015

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