Question
a) The owner of a manufacturing company manufactures two products A and B. Product A had operating expenses of $5 million with sales of $25
a) The owner of a manufacturing company manufactures two products A and B. Product A had operating expenses of $5 million with sales of $25 million. Product B had operating expenses of $6 million with sales of $60 million. Determine the Operating Expenses to Sales ratio for each store and conclude which store has the most efficient cost structure.
b) A petrol station has been open for two weeks. The owners of the petrol station want to know which of these weeks was the most productive.
In the first week of opening, the petrol station had sales revenue of $35, 000 with three full time employees, five 0.6 employees and five 0.2 employees.
In the second week of opening, the petrol station had sales revenue of $36,000 with seven full time employees, six 0.5 employees and five 0.4 employees.
i. Calculate the Sales to FTE employee ratio for the first week.
ii. Calculate the Sales to FTE employee ratio for the second week.
c) Calculate the annual percentage rate for an investment that offers a monthly interest rate of 0.075%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started