Papillon Co. has determined the following per unit amounts:
Direct materials $30 Fixed selling and administrative $60
Direct labor 36 Variable overhead 24
Desired ROI 33 Variable selling and administrative 15
Fixed overhead 45
The markup percentage using the absorption-cost approach is
a) 90%.
b) 80%.
c) 131%.
d) 102%.
Answer: b) 80%.
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Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier)
Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products' 2013 performance? (See Table 3.2) A) 5.6(ROE) = 2.5(ROA) × 2.22(Financial leverage multiplier) B) 5.6(ROE) = 3.3(ROA) × 1.70(Financial leverage multiplier) C) 4.0(ROE) = 2.5(ROA) × 2.00(Financial leverage multiplier) D) 2.5(ROE) = 5.6(ROA) × 2.22(Financial leverage multiplier)
Seasonal buildups of inventory and receivables are generally financed with ________
A) short-term loans B) long-term loans C) retained earnings D) stockholders' equity