Since Kermit calculated his total asset turnover to be 1.13, this tells Kermit that <span>every dollar of assets generates $1.13 in sales.
</span>Please note that it is useful to add the options provided with the question, in order to get an accurate answer and have your question answered quicker.
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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.
To calculate the sales in volume and dollars we need to use the break-even formula:
Break-even point (units)= (fixed costs + profit)/ contribution margin
Break-even point (units)= (80,000 + 40,000) / (64 - 40)= 5,000 units
Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
Break-even point (dollars)= 120,000 / (24/64)= $320,000
Answer:
Results are below.
Explanation:
Giving the following information:
The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make.
<u>The contribution margin per unit is calculated using the selling price per unit and the unitary variable cost:</u>
<u></u>
Unitary contribution margin= 205 - 164= $41
<u>Now, to calculate the contribution margin ratio, we need to use the following formula:</u>
contribution margin ratio= contribution margin/selling price
contribution margin ratio= 41/205
contribution margin ratio= 0.2
B) Strategy formulation and strategy implementation.
It summarizes the process through which companies and organizations sets a list of goals, evaluate strategies, select strategies and implement them for evaluation.
