Answer:
1. 73 %
2. 27 %
3. $60,000
4. Ways to increase projected operating income without increasing total sales revenue :
- Reduce the variable costs per unit
- Reduce fixed overheads
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
Where,
Contribution = Sales - Variable Costs
= $88,000 - $23,760
= $64,240
Then,
Contribution Margin Ratio = $64,240/ $88,000 × 100
= 73 %
Variable Cost Ratio = Variable Cost / Sales × 100
= $23,760 / $88,000 × 100
= 27 %
Break-even sales revenue = Fixed Costs ÷ Contribution Margin Ratio
= $43,800 ÷ 0.73
= $60,000
<u>Ways to increase projected operating income without increasing total sales revenue :</u>
- Reduce the variable costs per unit
- Reduce fixed overheads
Answer:
Type A is 7%, type b is 11%
Explanation:
We have these two firm's as type a and type b
For type A
Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%
For type B
= Risk free rate of 5% + risk free rate of 6% = 11%
I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.
Answer:
The correct answer is letter "B": improve; rise.
Explanation:
Terms of Trade measures the efficiency of a country's trade. It is a ratio which compares the exports of a country with its imports. It is <em>calculated by dividing the export value by the import value, and by multiplying the result by one hundred (100)</em>. A terms of trade figure higher than 100, means a country exporting goods at a higher value than its imports.
<em>Given the case that there is no willingness to trade in an economy after a growth, the most possible scenario to take place is that the trade terms will </em>improve <em>as a result of the decrease in the demand of imports and assuming the level of exports keeps at the constant level that allowed the economic growth or if it even </em>rises<em>.</em>
Answer:
The answer is: $29,000
Explanation:
To calculate Job A3B's costs during September we must add direct materials plus 3 times direct labor:
September costs = direct materials + (direct labor x 3) = $1,500 + $9,000
September costs = $10,500
We do the same for October:
October costs: direct materials + (direct labor x 3) = $2,000 + $16,500
October costs = $18,500
The total cost for Job A3B is: $10,500 + $18,500 = $29,000
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