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What else can I help you with?
How do you determine number of units to produce to maximize operating income?
You continue increasing production as long as the marginal income remains positive.
What is top line and bottom line profitability?
operating income divide by top line
How is gross income different from net income?
net income is gross income less expenses
How do you calculate our annual income?
i am not good in maths, but generally we can calculate annual income by multiplying our monthly income by 12.. as if know how much is our monthly income.. similarly by multiplying, we can find annual income on behalf of weekly income, or daily income or even on hourly income...
Whats the difference between tax free income and taxable income?
You pay tax on taxable income and you don't on tax free income
How do you calculate residual income?
Residual Income (RI) can be calculated with the following equation. RI = Operating Income - (Operating Assets x Minimum Required Rate of Return) Equals a $ amount. RI is often used to compare Investment Centers with the Return of Investments (ROI) equation. ROI = Operating Income / Operating Assets) Equals a %.
Who does Residual income of a firm belongs to?
The residual income of the firm belongs to
The residual income of the firm belongs to?
residual income belongs to the common stockholders.
What does projected income mean?
Projected income is the amount of money that a company's accounting staff estimates the company will earn in the next fiscal period (or further in the future). It is generally forecasted using historical data and trends in income growth/decline, and predicted growth patterns from current and historical information.
How is residual operating income calculated?
Residual Operating Income (ReOI) is a method of valuing a firm's operations. The formula below can be used on historical data to identify and analyse historical trends, but lenders (as well as any other interested parties) can also use forecasted figures to predict the future value of the firm, to (e.g.) help in their lending decisions. ReOI for a trading entity = Total Sales x [Core Sales Profit Margin - (Required Return / ATO)] + Other OI +UI Where: Core Sales Profit Margin = Net Operating Profit after tax / Total Sales Required Return is the rate demanded by the investor, given the level of risk in the business ATO = Asset Turnover = Total Sales / NOA NOA = Net Operating Assets = Accts Receivable + Inventory + PP&E Other OI = Includes income derived by a parent entity from its subsidiaries UI = Unusual Income - e.g. if the restructuring of a firm impacts on its operating income (not common)
What is the distinction between operating and non operation income?
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
Would you explain residual income guidelines for FHA loans?
FHA doesn't have residual income guidelines...this applies to VA loans
How do you calculate operating income?
Operating income is calculated by subtracting operating expenses from gross income. Operating expenses include costs directly related to the production and sale of goods or services, such as wages, rent, and utilities. The formula for operating income is: Gross Income - Operating Expenses Operating Income.
Cost to income ratio?
operating expenses/operating income
How do you calculate net operating income?
Total operating income less total operating expense = net operating income (or loss if the expenses were higher)
What is the difference between operating income and non-operating income?
Operating income is that income which is earned through primary business activity while non operating income is that part of income which is not generated through primary operations of business like interest income, dividend income etc.
How do you calculate the degree of operating leverage?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
