Ramsey Automotive Ltd

question 56

Essay

Ramsey Automotive Ltd.had sales of $2 000 000 and net operating income of $600 000 last year.Operating assets last year averaged $1 000 000.The company's manager is considering the purchase of a new machine which is expected to increase average operating assets by 6 per cent.
Required:
Calculate the company's new ROI if the new machine is purchased.

Explain how specialization and trade enable countries to consume beyond their production possibilities.

Analyze the impact of changes in exchange rates on trade balances.

Understand the concept of terms of trade and how they are determined.

Illustrate the benefits of free trade and the role of exchange rates in facilitating it.

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Definitions:

Authority

The authority or ability to issue commands, make judgments, and ensure compliance.

Courteous Phone Behavior

The practice of demonstrating politeness, respect, and consideration for others during phone conversations.

Pitch

A presentation or proposal aimed at persuading or informing an audience, often used in sales or marketing contexts.

Inflection

The modulation of the voice to express meaning, emotion, or emphasis in spoken language.