Answer:
Contribution= $214,800
Explanation:
<em>Contribution margin ratio is the proportion of sales revenue that is earned as contribution. </em>
Unit sold = revenue / selling price = 880,000/55 = 16,000 units
Contribution = Sales revenue - variable cost
Variable admin = 4% × 880,000= 35200
Variable selling = 5× 16,000 = 80,000
Contribution = Sales revenue - cost of goods sold - admin - selling
= 880,000 - 550,000- 35200 - 80,000=214,800
Contribution= $214,800
Answer:
lower; higher.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).
This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.
Answer:
The predicted value of sales is $75,037,500.
Explanation:
Given:
Q = 875 + 6XA + 15Y - 5P ……………………..(1)
Where:
Q = quantity sold = ?
XA = Advertising = $100,000
Y = Income = $10,000
P = Price = $100
Substituting the values into equation (1), we have:
Q = 875 + (6 * 100,000) + (15 * 10,000) - (5 * 100)
Q = 750,375
Therefore, we have:
Predicted value of sales = Q * P = 750,375 * $100 = $75,037,500
Therefore, the predicted value of sales is $75,037,500.
Answer:
C. Debt to Income Ratio
Explanation:
The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.
Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.
Answer:
Total cash collection= $530,000
Explanation:
Giving the following information:
<u>Sales:</u>
February $500,000
March $400,000
April $600,000
60% of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following the sale.
<u>Cash collection April:</u>
Cash collection credit sales from April= (600,000*0.6)= 360,000
Cash collection credit sales from March= (400,000*0.3)= 120,000
Cash collection credit sales from February= (500,000*0.1)= 50,000
Total cash collection= $530,000
