Question

A firm has an ROI of 15?
1) 1,800,000
2) 5
3) 30
4) 600,000

Answer 1

To calculate the ROI, we need to know the net income and the average assets of the firm. Unfortunately, this information is not provided in the question. Therefore, we cannot determine the exact value of the ROI based on the options given.

The ROI is calculated by dividing the net income by the average assets. Without knowing these values, we cannot determine the ROI.

Please note that it's important to have all the necessary information to accurately calculate the ROI. If you have any additional information or data, please provide it, and I'll be happy to assist you further.

Step-by-step explanation:

Answer 2

To calculate the firm's accounting profit, deduct total expenses ($950,000) from the sales revenue ($1,000,000), resulting in an accounting profit of $50,000.

Step-by-step explanation:

The question appears to be asking for an understanding of how to calculate a firm's accounting profit. To calculate this, we need to subtract the firm's total explicit costs from its total sales revenue. In the provided scenario, the firm had sales revenue of $1 million last year. The firm's expenses included $600,000 on labor, $150,000 on capital, and $200,000 on materials. Therefore, the firm's accounting profit is calculated as follows:

• Total sales revenue: $1,000,000
• Total expenses (Labor + Capital + Materials): $600,000 + $150,000 + $200,000 = $950,000
• Accounting profit (Sales Revenue - Total Expenses): $1,000,000 - $950,000 = $50,000

The firm's accounting profit would be $50,000.