Answer:
The total contribution margin for the firm is: $209,095
Explanation:
The contribution margin is calculated by using following formula:
Contribution margin = Total sales – Total variable costs
In International Imports,
Total sales = $674,500
Total variable costs = cost of goods sold + total variable selling and administrative expense = $404,700 + $60,705 = $465,405
Contribution margin = $674,500 - $465,405 = $209,095
Answer:
$523,644
Explanation:
The computation of the market value of this firm is shown below;
Asset at realizable value amount ($)
Building appraised value $1,300,000
Equipment current value $327,000
Inventory Market value ($270000 ÷ 2) $135,000
Accounts receivables ($155,200 × 97%) $150,544
Cash $11,100
Total assets gross available $1,923,644
(-) Owings -$1,400,000
The Market value of the firm $523,644
Answer: Point B
If the demand increases suddenly because of a non-price determinant of demand, equilibrium point will shift to point B. At point B, the demand for mangoes increased from 4000 to 5000 pounds, and the price increased as well, from $5 to $6.
Answer:
1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.
2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.
Explanation:
Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.
In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.
Answer:
Hi the demand for each product for this question is missing, however, i have provided step by step approach to solving the problem below .
Explanation:
First Calculate the contribution per unit of each product
A B C
Sales price $65.50 $57.50 $75.25
Less Total variable cost ($28.85) ($26.50) ($38.95
)
Less Direct material cost ($11.25) ($8.90) ($22.75)
Contribution $25.40 $22.10 $13.25
Calculate the contribution per limiting factor of each product and rank the products
<em>contribution per limiting factor = contribution per unit ÷ quantity per limiting factor per unit</em>
A B C
Contribution $25.40 $22.10 $13.25
Quantity of limiting factor 4.65 6.3 5.9
Contribution per limiting factor 5.46 3.51 2.25
Ranking 1 2 3
Allocate the limiting factor according to the limiting factor
The company will on produce Product A as this is the most profitable.
Contribution = $25.40
