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expeople1 [14]
3 years ago
5

Jones Company sells an average of 200 chairs per week, of which 30% are regular chairs and 70% are executive chairs. Regular cha

irs sell for $100 each and incur variable costs of $62. Executive chairs sell for $170 each and incur variable costs of $125. The contribution margin per unit and total contribution margin for regular chairs is:
Business
1 answer:
MissTica3 years ago
7 0

Answer:

Contribution margin per unit: $42.9

Total contribution margin: $8,580

Explanation:

The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:

60 regular chairs

140 executive charis

Now the total in sales is:

Regular sales: $6,000

Executive chairs: $23,800

The variable cost of each is:

Regular chairs: $3720

Executive chairs: $17,500

We add up the sales and withdraw from it the total variable cost:

29,800-21,220=8,850

The total contribution margin is equal to $8850.

And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:

8850/200=  42.9

So the contribution margin per unit is 42.9 dollars.

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Saban Ironworks most recent reported free cash flow was $419.5 million. You project that the FCF will grow at a constant rate of
Olegator [25]

Answer:

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 28 million stock options were granted, exercisable for 28 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $10. The fair value of the 28 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize fonexpectedly to $26 per share.

6 0
2 years ago
Assume that you purchase a 6-year, 8% certificate of deposit for $1,000. If interest is compounded annually, what will be the va
Dmitry [639]

Answer:

$ 1,586.8743

Explanation:

Calculation to determine what will be the value of the certificate when it matures

Compounded annually

Principal P= 1000

Rate r=0.08

Period n = 6

Using this formula

A = P (1+r)^n

Let plug in the formula

1000 (1.08)^6

= 1586.8743

Therefore what will be the value of the certificate when it matures is $1586.8743

8 0
3 years ago
A homeowner fears the construction of a factory nearby will decrease the value of her property. this illustrates the principle o
Mama L [17]

A homeowner fears the construction of a factory nearby will decrease the value of her property. this illustrates the principle of externalities.

Many people are unaware that there are tax advantages for home owners when they purchase, own, remodel and even sell their property. These advantages take the form of tax deductions, which lower your taxable income and hence lower your tax payment.

However, you might be astonished to hear that even though the house was bought with a mortgage, you still own it. As the homeowner, your name is listed on the title. The lender does not actually own your home; rather, they only have a stake in the property and the mortgage note.

According to the Federal Reserve's 2020 Survey of Consumer Finances, if you own your home, you probably have a higher value than someone who rents. The assumption that owning a home is a wise financial decision is supported by the fact that homeowners have a net worth that is more than 40 times bigger than their counterparts who rent.

Learn more about homeowners here:

brainly.com/question/23428348

#SPJ4

4 0
1 year ago
The risk-free rate of return is 2.5 percent; the expected rate of return on the market is 7 percent. Stock X has a beta coeffici
zvonat [6]

Answer:

  • Stock is overpriced/ overvalued.
  • Sell if you own it.
  • Don't buy if you don't.

Explanation:

Use CAPM to find the required return on the stock:

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 2.5% + 1.3 * (7% - 2.5%)

= 8.35%

Price based on Constant Dividend Growth Model (CDGM):

Price = Next dividend / (Required return - growth rate)

Next dividend = 1.40 * ( 1 + 4%)

= $1.456

Price = 1.456 / (8.35% - 4%)

= $33.47

<em>Stock is selling for $35. It is overvalued. Don't buy the stock. Sell if you have the stock. </em>

4 0
2 years ago
​Sustainable businesses tend to be run by CEOs who are:
Marianna [84]
The answer is Target-driven<span>
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8 0
3 years ago
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