Ryan\'s sales and operating income were $500,000 and $100,000 respectfully durin

Question

Ryan's sales and operating income were $500,000 and $100,000 respectfully during the past year. If his turnover was 2.5. what was its return on investment? If Ryan's target ROI is 30%. what was its Residual Income last year? Ryan manufactures a high-fiber snack that utilizes 2 pounds of raw material per unit. The standard price per pound is $5. which results in a total material standard of $10 per snack During the month of July they purchased 10.000 pounds of material for $55,000. They produced 4.000 units of product during the month and had an unfavorable material quantity variance of $2,000. What was the raw materials inventory value at the end of July?

Explanation / Answer

$2,000

Turnover = 2.5 Assets = 500000/2.5 = $200,000 Return On Investment = Net Income / Assets = 100000 / 200000 = 0.5

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---