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please answer par B: a,b,c,d interesa Net profit margin Quick ratio Return on equity wentory turnover Operating profit margin Return on assets Total asset turnover
please answer par B: a,b,c,d
interesa Net profit margin Quick ratio Return on equity wentory turnover Operating profit margin Return on assets Total asset turnover bl (16 marks Based on your results from part al, compare and discuss the liquidity and capital structure of the two firms. PART A continued on the net page c) (8 marks) Perform a decomposition of operating profitability similar to that carried out in the textbook and compare the determinants of operating profitability for Ytrew and its competitor. Based on your analysis, discuss areas where Ytrew's management might seek improvements in order to match its competitor. di ( (7 marks) Perform a DuPont decomposition of return of equity for Ytrew and its competitor and discuss any differences hetween the two tims PART : (45 marks) Dewgas Limited has prepared the following profit analysis, for the current financial year Sales (150,000 units $ Variable expenses $ Contribution margin Fixed expenses $ Profit $ 1,485.000 712.500 772,500 258,000 514,500 Management are considering a range of options to improve profitability. These options include reducing the selling price by $0.25 per unit and updating machinery and production methods. It machinery and production methods are updated, fixed expenses will increase by 576,000 per year and variable esperies will decrease by $1,40 per unit. However, management are concerned at the increased risk from changes to the level of operating gearing. If the selling price is reduced by $0.25 per unit, the number of units sold is expected to increase by 10%. There is no reason why management cannot reduce the selling price and update machinery and production at the same time. Required: al (16 marks) Calculate the contribution margin per unit, total fixed costs, the breakeven point in units, and total expected profit for all of the possible choices that management can make. Present the results of your calculations in a table. Do not include formulas in your write-up. bi (10 marks Complete the following table, showing expected prolit at various sales levels for (i) the current state of operations (no changes) and (in the case where machinery and production methods are updated: 0 50,000 100,000 150,000 200,000 Sales (units] Expected profit Ino changel Expected profit machinery & production methods updated) c (9 marks) Based on your results for part (b) produce a profit-volume chart. Show both cases on the same set of axes di (10 marks Based on your results to parts (a), (b) and (c), write a brief recommendation to management advising on the recommended course of action. interesa Net profit margin Quick ratio Return on equity wentory turnover Operating profit margin Return on assets Total asset turnover bl (16 marks Based on your results from part al, compare and discuss the liquidity and capital structure of the two firms. PART A continued on the net page c) (8 marks) Perform a decomposition of operating profitability similar to that carried out in the textbook and compare the determinants of operating profitability for Ytrew and its competitor. Based on your analysis, discuss areas where Ytrew's management might seek improvements in order to match its competitor. di ( (7 marks) Perform a DuPont decomposition of return of equity for Ytrew and its competitor and discuss any differences hetween the two tims PART : (45 marks) Dewgas Limited has prepared the following profit analysis, for the current financial year Sales (150,000 units $ Variable expenses $ Contribution margin Fixed expenses $ Profit $ 1,485.000 712.500 772,500 258,000 514,500 Management are considering a range of options to improve profitability. These options include reducing the selling price by $0.25 per unit and updating machinery and production methods. It machinery and production methods are updated, fixed expenses will increase by 576,000 per year and variable esperies will decrease by $1,40 per unit. However, management are concerned at the increased risk from changes to the level of operating gearing. If the selling price is reduced by $0.25 per unit, the number of units sold is expected to increase by 10%. There is no reason why management cannot reduce the selling price and update machinery and production at the same time. Required: al (16 marks) Calculate the contribution margin per unit, total fixed costs, the breakeven point in units, and total expected profit for all of the possible choices that management can make. Present the results of your calculations in a table. Do not include formulas in your write-up. bi (10 marks Complete the following table, showing expected prolit at various sales levels for (i) the current state of operations (no changes) and (in the case where machinery and production methods are updated: 0 50,000 100,000 150,000 200,000 Sales (units] Expected profit Ino changel Expected profit machinery & production methods updated) c (9 marks) Based on your results for part (b) produce a profit-volume chart. Show both cases on the same set of axes di (10 marks Based on your results to parts (a), (b) and (c), write a brief recommendation to management advising on the recommended course of actionStep by Step Solution
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