Answer:
The correct option is B,common stock 30,000 cash 10,000 and building 20,000
Explanation:
Geraldine Parker's contributions to the business -that is both cash and building are seen as his capital invested in the business.Invariably, it is assumed the new business owes Geraldine Parker the worth of resources invested
Appropriate double entries for the transaction are shown below
Dr Cash $10000
Dr Building $20000
Cr Capital $30000
This is the capital as at the start of the business,it is also possible that Geraldine Parker contributes additional capital which adds to existing capital.
Also,the profits made increases the stake of the owner in the business and drawings should e deducted from the capital in case the owner withdraws cash or goods from the business.
When Val sees the RFP issued by one of his customers, he is concerned that they have changed their specifications since they placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor
A. will necessitate renegotiating price and delivery terms.
B. .allows for a straight rebuy.
C. offsets a consensus buying center culture.
D. will probably not be an advantage in getting the new order.
E. will allow Val to get the order even though his products do not meet the specifications
Answer:
D) will probably not be an advantage in getting the new order.
Explanation:
A request for proposal (RFP) is issued when a company is requesting information from possible vendors that might be able to provide them with the products that they need.
If Val has recently provided a similar product to the one included in the RFP, that means that either Vl's product did not meet their expectations or they need a similar product but with different characteristics. Whichever the case, Val is at a bad position for the new purchase process.
During its first year of operations, the owner of Lupo Company invested $15,000 in the business and withdrew $2,000. The company earned $35,000 of revenues and incurred $23,000 of expenses. At the end of the year, the company's equity totaled:
Answer:
$25,000
Explanation:
Lupo Company's equity = owner's equity + retained earnings
owner's equity = $15,000 (initial investment) - $2,000 (withdrawal) = $13,000retained earnings = net income = total revenue - total costs = $35,000 - $23,000 = $12,000Lupo Company's equity = $13,000 + $12,000 = $25,000
Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school would covet her bag and wish to be like her. When she walked in, she whipped out her credit card and purchased the $5,000 bag. This kind of purchasing is called:
Answer:
conspicuous consumption
Explanation:
The term conspicuous consumption was first introduced by a Norwegian-American economist and sociologist known as Thorstein Veblen in 1899. Conspicuous consumption refers to the practice whereby expensive goods or services are purchased by certain people at an outrageous cost just for the sake of display of flamboyant lifestyle or wealth for recognition purpose rather than for the very basic need the goods or services meet. It is simply an act of wasteful spending on goods or services that other people of that social class on a normal day cannot afford to pay such expensive price for.
The case of Hope is simply a kind of conspicuous consumption as she doesn’t mind emptying her credit card to afford the luxury of the new designer purse just for the purpose of public display among her social class.
scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increases prices by 48 %, total revenue decreases by 63 %. When Cinema Supreme decreases ticket prices by 12 %, total revenue does not change. When Bluebox, a DVD rental kiosk, increases its prices by 43 %, total revenue increases by 31 %.
Answer:
Elastic demand
Unit elastic demand
Inelastic demand
Explanation:
Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded/ percentage change in price.
Denand is elastic if when price is increased, the quantity demanded changes more than the increase in price. Quanitity demanded is more sensitive to changes in price.
If price is increased, the quantity demanded falls and as a result the total revenue earned by sellers falls.
The elasticity of demand is usually greater than 1 when demand is elastic.
Demand is unit elastic if a change in price has the same proportional change on quantity demanded. The coefficient of elasticity is equal to one.
If price is increased, the quantity demanded changes by the same proportion so there's no change in total revenue of sellers.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
Coefficient of elasticity is usually less than one.
If price is increased, there is little or no change in the quantity demanded and as a result the revenue earned by sellers increase.
I hope my answer helps you
Darwin Inc. sells a particular textbook for $29. Variable expenses are $21 per book. At the current volume of 44,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:______________
a) $352,000
b) $1,276,000
c) $1,628,000
d) $924,000
Answer:
The answer is A
Explanation:
To start with;
Contribution margin per unit = selling price($29) - variable cost($21)
$29 - $21
= $8 per book...
So break even sales =fixed cost(expense) / contribution margin.
Break even sales is 44,000 units and contribution margin is $8.
Therefore, fixed cost or expenses=
Break even sales x contribution margin
44,000 x $8
=$352,000
Cruz Gray Inc. positions its beauty and skin care products as the only products in the market that are 100 percent natural and are not tested on animals. This gives the company a significant advantage over its competitors. In the given scenario, which of the following strategies does Cruz Gray Inc. use?
A. Product differentiation
B. Maket differentiation
C. Market segment
Answer:
A. Product Differentiation
Explanation:
Cruz Gray Inc. positions its beauty and skin care products as the only products in the market that are 100 percent natural and are not tested on animals. This gives the company a significant advantage over its competitors. In the given scenario, Cruz Gray Inc. has successfully used product differentiation strategy. With the help of product differentiation Cruz Gray Inc. has gained a very unique sustainable competitive position in the beauty and skin care market. They have positioned their products in the mind of their consumers as 100% natural and organic products which are not tested on the animals. This has made started seeing their customers this company as Eco-friendly brand which take care both its customers and environment as well.
Suppose an economist found that total revenues increase for the bus system when fares were raised, the conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic.True/False
Answer:
True
Explanation:
Price in-elasticity happens when individuals can not possibly shift or change their behaviors or process of Consummation.
In the case of the bus system, people do not have a Better choice from the bus system although the bus system increase bus fares.
If people do not have a better choice or option for there consumption, we say that price elasticity demand for a particular commodity is inelastic .
Answer:
True
Explanation:
Price Elasticity of Demand is responsive change in demand, due to change in price. P(Ed) = % change in demand / % change in price.
Demand can be classified on the basis of : Elasticity & its relationship with Total Revenue [ TR = P X Q] ; as undermentioned :-
Elastic Demand : P(Ed) > 1, %change in demand > %change in price, Price & Total Revenue are inversely related [ P ↑ TR ↓ , P ↓TR ↑ ] Inelastic Demand : P(Ed) < 1, % change in demand < %change in price , Price & Total Revenue are positively related [ P ↑ TR ↑ , P ↓ TR ↓]As Given : Increase in bus fares (price) lead to increase in total revenue. This implies Price & Total Revenue are directly related. So, Demand for subway bus services is Inelastic.
Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that the price of natural gas is expected to rise in the future. What would you do in the present?
Answer: Extract as much gas as possible now.
Explanation:
As the owner of a natural gas exploring company with the ability to drill and export gas, if I receive information of a coming price increase in the market for gas, I would rapidly increase gas exploration to increase amount of gas that I can legally send to the market.
Answer:
Delay extraction to a future time
Explanation:
The only principal reason why we venture into business is to make profits. While we are doing this, we are equally looking at options and scenarios that could grant us access to the maximum possible profit.
In clearer terms, we seem to take out the maximum profit we can from the business. Now, as we can see, there are two cases presented and we need to judge to know what to do.
Speculations have arrived that there might be an increase in the price of natural gas in the future. Hence, what is meant to happen is that we bottle up our production to a later time at which we are presented with the option to maximize our profits.
A plumber has a car payment of $250 per month. $225 of which goes to paying off the principal, and the rest goes towards the interest. What percent is being payed for interest
Answer:
Rate=R%=11.1111%
Explanation:
Given,
Amount=A=$250 (per month)
Principal=P=$225 (per month)
Interest=A-P=$250-$225=$25 (per month)
Time=1 month
Rate=R%=?
S.I=P×R%×T/100
25=225×R%×1/100
25×100/225=R%
R%=100/3
R%=11.1111%
Final answer:
10% of the plumber's monthly car payment is for interest, calculated by dividing the interest amount by the total payment and then multiplying by 100.
Explanation:
The plumber has a car payment of $250 per month, with $225 going towards the principal and the remainder towards interest. To find out what percent of the payment is for interest, we subtract the principal amount from the total payment to find the interest amount:
$250 - $225 = $25Now, we take the interest amount and divide it by the total car payment, then multiply by 100 to find the percentage:
($25 ÷ $250) × 100 = 10%Therefore, 10% of the plumber's car payment is for interest.
"If your firm expects the euro to substantially appreciate, it could speculate by ____ euro call options or ____ euros forward in the forward exchange market."
Answer:
purchasing; purchasing
Explanation:
Call option can be explained as the means through which someone has a right to buy a thing at an agreed or certain price within a specific time frame or a particular date.
Forward exchange market can be described as a market where forward contract is made. Forward contract is a kind of contract or agreement usually between two individuals or parties in exchanging or delivering designated currencies at a specified exchange rate at a specific time in the future.
It should be noted that both call option and forward contract protects the buyer from the flunctuations in the prices of currencies during that agreed specific time frame.
In this case, the firm that foresees or expects a substantially appreciation in euro can adopt these two methods.
1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: a. Property market. b. User market. c. Housing market. d. Capital market.
A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a "User market".
Option: B
Explanation:
A market analyst is more generalized than research involving consumers. Market analysts are studying customer behavior, and recognizing their needs. They disclose demographic, fiscal, and statistical data about a particular sector. The data was used by both industry analysts and consumer analysts to make informed decisions.
Here the tenant is bargaining or trying to get compensated the amount of rent to be paid monthly, by discussing the topic with property owner is understood as user market, because according to user need or demand the landlord may get agree to understand the user concern.
Sun Technologies, a cell phone manufacturing company, decided to change the operating system of its phones to eliminate the problems faced by the users while using the current operating system. Before implementing the change, the marketing team of the company started creating advertisements that informed the users about the benefits of the new system in an attempt to make them believe that the change is for the better. In the given scenario, Sun Technologies is in the _____ phase of organizational change.
Answer:
Unfreezing
Explanation:
There are three phases of organizational change. Sun Technologies can be said to be at its unfreezing stage.
The organization must properly communicate with its employees and consumers at each level of changes they are.
At the unfreezing stage, the goal is to change the mindset and belief of the consumers about a particular process being deployed. Since the adoption of the new technology is being advertised as one that will make things better, we can see elements of unfreezing here. Other stages are the actual change phase and freezing stageSun Technologies is in the communication and preparation phase of organizational change, preparing for the executing change phase in Lewin's three-step change model.
In the scenario presented, Sun Technologies is in the communication and preparation phase of organizational change, specifically before the second stage of Lewin's three-step change model which is executing change.
The marketing team's efforts to advertise the benefits of the new operating system serve the purpose of preparing users for the transition, aiming to ensure a smoother acceptance of the change.
This step is crucial as it establishes a foundation for the implementation phase and can lead to a series of small wins that build the momentum needed for the change to gain traction and be successful within the organization.
Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of:_______.a. larceny.b. trespass.c. misrepresentation.d. conversion.
Answer:Trespass
Explanation:
His refusal to leave after he had been asked to is trespassing; so also, he wasn’t a customer he was a spy sent to peak at the competitor. He also sought this information without permission.
I was so excited for school to end and for summer vacation to begin. My grandpa and I were going to begin building a new fence around my backyard. I was really looking forward to spending the time with my grandpa. Which best describes the style of this text?
Answer: Casual.
Explanation:
A text or a paragraph is a set of words or sentences that together make a narrative. They have the distinction of starting with a capital letter and ending at a point. Paragraphs usually formulate only part of a narrative.
There are different styles of text, one of these is the casual text. This type of writing is very simple, it narrates the events in an orderly way with an urban or casual language. Emotions or actions are generally expressed in this type of text.
I hope this information can help you.
Answer: C. Casual
Anyone play r6
For determinant differences to exist, actual or perceptual differences must exist between brands. And the brand difference must be important to customers as they decide which brand to purchase. A. True B. False
Answer: True.
Explanation: it is an absolute truth that for a determinant differences to exist, actual or perceptual differences must exist between brands and the brand difference must be important to customers as they decide which brand to purchase.
What are the most common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes?
Answer:
The correct answer is:
Corporations, limited liability companies (LLCs), general and limited partnerships, and sole proprietorships.
These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules that determine how they and their owners will be taxed.
Explanation:
There are several important reasons, when opening a business in the US, to run the business under a limited liability company, corporation or other form of legal entity that has a separate legal existence to the business owner. The main reason for operating the business under a limited liability company or corporation is that it protects the personal assets of the business owner from the liabilities arising from the operation of the business.
One of the first decisions you will have to make as a business owner is the way the company should be structured. There is no single legal structure that is considered the best for all small businesses. The decision to start as a sole proprietor or the choice of one of the most complex organizational structures, such as a partnership, corporation or Limited Liability Company (LLC) depends on several
factors, including those listed below.
When choosing a type of entity, you should consider the following:
Your vision about the size and nature of your company Number of co-owners of the company Relationship between owners and management Degree in which you will look for external investors Level of "structure" and formality for which you are prepared as a manager Expenses, in time and money, for the creation and maintenance of the entity commercial Vulnerability of the company to face demands and other obligations Tax implications of the different ownership structures Expected profits (or losses) of the company Whether or not you will have to reinvest profits in the business The need to access cash from the company for its use personal∗ percy consumes cakes and ale. his demand function for cakes is qc = m − 30pc + 20pa, where m is his income, pa is the price of ale, pc is the price of cake and qc is the quantity of cake.
Solution:
Since there exists a positive relationship between price of ale and demand for cakes, the two are substitutes.
After substituting the given values,
Qc = 100 – 30pc + 20 pa
Where, qc= quantity of the cake, m = income of percy, pa = price of ale, pc = price of cake
Qc = 120 – 30 pc
Now, Rearranging demand function calculated above,
Qc = 120 – 30 pc
30 pc = 120 – Qc
Thus, Pc = 4 – 0.033 Qc
Which of the following refers to products that organizational customers purchase to use in their finished products? A. Accessories B. Component parts C. Equipment D. Specialized services E. Raw materials
Answer:
The correct answer is E. Raw materials.
Explanation:
A raw material is all good that is transformed during a production process until it becomes a consumer good.
There are some material goods that cannot be used directly by consumers since they need to be transformed (oil for example). Raw materials are the first link in a manufacturing chain, and at different stages of the process they will be transformed into a product suitable for consumption. In the world of investment it is also known as commodity.
The main characteristic of the raw materials is precisely the lack of treatment to which they have been subjected by human activity, that is, their proximity to the natural state in which they were before being exploited.
Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year, indefinitely. The required return on this stock is 15 percent, and the stock currently sells for $60.00 per share. What is the projected dividend for the coming year?
To determine the projected dividend for the upcoming year for Frey Corp., you need to calculate the growth rate based on the provided information.
Frey Corp. is expected to have dividend growth rates of 25% for the next three years, 18% the following year, and then 8% indefinitely.
The stock is currently valued at $60.00 per share with a required return of 15%.
The projected dividend for the coming year is calculated by taking the current dividend of $60.00 and multiplying it by the growth rate of 25%:
Projected Dividend = $60.00 x 25% = $15.00.
Abed carries an average monthly balance of $800 in his checking account. If his bank charges $9.00 per month as a minimum service fee, how much in annual interest must Abed earn to cover the monthly fee?
Answer:
Abed must earn 13.5% or $108 annual interest to cover the monthly fee.
Explanation:
Abed should earn minimum $9 of interest on deposit each month to cover the bank charges expense.
Average Monthly Balance = $800
Bank Charges = $9.00 per month
Monthly interest rate = (Monthly bank charges / Monthly average balance ) x 100
Monthly interest rate = ( $9.00 / $800 ) x 100 = 0.01125 x 100 = 1.125%
Annual Interest rate = 0.01125 x 12 = 0.135 = 13.5%
Annual Interest = $800 x 13.5% = $108
Last year both a borrower and a lender expected an inflation rate of 3 percent when they signed a long-term loan agreement with fixed nominal interest rates of 5 percent. If the actual inflation rate were lower than expected, then which of the following would be true?A. The borrower would benefit.B. The lender would benefit.C. The real interest rate would be lower than expected.D. The nominal interest rate would be higher than expected.
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
A. The borrower will benefit
Explanation:
The borrower benefits in the sense that the anticipated margin that took a 3% inflation rate into consideration will be smaller than the actual margin when the loan is repaid due to the prevailing inflation rate being smaller than anticipated. In simple English, the value of money the borrower gets at the time of repayment is higher than what was anticipated based on the expected inflation rates
If there is an unanticipated increase in aggregate demand, then it means that
If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with an Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rise
Explanation:
lets consider that an economy was initially in long-run equilibrium, now if their is an unanticipated increase in aggregate demand it will result in an temporary high level of output and employment which cannot be maintained. But when an economy is in a recession stage ,less demand for investment funds will cause the real interest rate to decline.
So we can say that ,If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with an Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rise
Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its ________.
Answer:
The group of people that will launch Kathy's firm is called New Venture Team
Explanation:
As per the definition, a new venture team can be understood as a group of people who are -
FoundersAdvisors Key employeesof some already existing firm and plan to develop a separate new firm which is fully functional as a new firm.
In the question the people in the group are already a member of some firm and prepared to launch a new firm so this group will be termed as new venture team.
Ford and Xeroc are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have wmployed is known as job:________.
(A) enlargement
(B) substitution
(C) generalization
(D) enrichment
(E) rotation
Answer: E) Rotation
Explanation:.
Job Rotation technique is a technique where workers are shifted between two or more positions or functions at regular intervals. It is a technique used to test the employee skills and competencies in order to place employees at the right position and it also help to reduce the monotony of the job and gives employees a wider experience and motivate employee when they perform different job functions at intervals.
Job rotation technique helps to reduce the boredom of doing same type of job everyday.
Coronado Industries began the year 2022 with retained earnings of $661000. During the year, the company sold additional shares of stock for $1011000, recorded revenues of $621000, expenses of $377000, and paid dividends of $137000. What was Coronado's retained earnings balance at the end of 2022
Answer:
The Coronado`s Retaining Earnings Balance is at end of 2022 is $ 808 000
Explanation:
Retained Earnings at the end of the year is calculated by adding together The Retained Earning at the Beginning of the Period, the Distributive Profit for the year ( Profit for the year after Interest and tax), then subtracting the dividends paid during the year.
From the question Retained Earnings at the Beginning of the year was provided at $661000.
The Distributive Profit needed a calculation. Revenue minus Expenses gives us profit.Expenses here include ALL trading, operating interest and tax expenses. This give is a Distributive Profit of $ 284000 ( $621000-337000). The $1011000 is disregard in calculation of profit and only Revenues that match with expenses are regarded (Accrual Principle).
The dividend paid was provided for at $ 137000.
This the Retained Earnings figure at end of 2020 is $808000( 661000+284000-137000)
Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:__________.A. laid off.B. underemployed.C. out of the labor force.D. unemployed.
Answer: Unemployed.
Explanation:
Gomer is unemployed because he is willing and qualified to work but cannot secure a job. An individual is said to be unemployed if they are unable to secure a job after several attempts to get a job. While a person is said to be under-employed if the person is paid less than what he/she is worth based on qualification.
Answer:
Underemployed
Explanation:
Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario?
Direct marketing element is used in this case.
Explanation:
Direct marketing in one of promotional methods of marketing that not only involves the description of product and company but also targets the customers. Through this method, the products are sold directly to public and there is no involvement of any middleman. An offer is communicated to a pre-slected customer and is told about the product information and its features.
Thus, in the given case, the promotional method that is being used in direct marketing method.
Mr. Noriega paid $700 for each of three suits. Since all of the suits were pleasing to his taste, he would have been willing to pay according to this schedule: $950 for the first suit, $800 for the second suit, and $700 for the third suit. How much was his consumer surplus?a. $100.b. $150.c. $350.d. $250.
Answer:
C. $350
Explanation:
When a consumer is willing to pay more compared to the product's original price, it is called consumer surplus. In this case, Mr. Noriega paid $700 for each shirt. Because of changing tastes, he would be able to give more prices for each of the shirts. Therefore, it created a consumer surplus. Total consumer surplus for buying three shirts -
1. $950 - $700 = $250 From 1st shirt.
2. $800 - $700 = $100 From 2nd shirt.
3. $700 - $700 = $0 From 3rd shirt.
Therefore, total consumer surplus = $250 + $100 = $350
Hence, option C is the answer.
Meadow Range Pvt. Ltd. is a firm based in France that has one of the finest wine breweries in the country. Due to the availability of many grape varieties and suitable climatic conditions for growing grapes in France, Meadow Range has an advantage when competing in the international market. According to the diamond model, Meadow Range benefits from:
Answer:
C) factor conditions.
Explanation:
Michael Porter developed his Diamond Model to try to explain why some industries within certain countries possess competitive advantages over similar industries on other countries.
In this case, the climate conditions and the land of the French countryside favor the production of fine wines. This is an example of factor conditions that cannot be copied by other wine producers in other nations.
Final answer:
Meadow Range Pvt. Ltd. benefits from competitive advantages in the international wine market due to factor conditions, demand conditions, related industries, and industry rivalry as per the diamond model.
Explanation:
Meadow Range Pvt. Ltd., a prestigious winery based in France, enjoys significant competitive advantages in the international market according to the diamond model. This framework for understanding competitive advantage suggests that certain factors can make a nation's industries more competitive. Meadow Range benefits from factors such as factor conditions, which include the availability of numerous grape varieties and the ideal climate for viticulture in France.
Furthermore, the demand conditions locally can contribute to competitiveness by encouraging firms to innovate and improve quality. The presence of related and supporting industries, including high-quality suppliers and related sectors such as hospitality and tourism, can also enhance Meadow Range's success. Lastly, the firm's strategy, structure, and rivalry within the French wine industry push it to maintain high standards and continuous innovation, further sharpening its competitive edge.
You are using ROI to evaluate a project that requires investments of $500 in each of the first 3 years, and yields annual income of $100, $50, and $25 in each of the first 3 years. What would happen to ROI if the annual incomes double?
Answer:
ROI doubles
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = (Annual income) ÷ (Initial investment)
If we take the first case,
Annual income = $100
And, the investment = $500
So, the ROI = $100 ÷ $500 = 0.2
If the annual income doubles i.e $200
So, the ROI = $200 ÷ $500 = 0.4
So in the given case, the ROI also doubles