Answer:
Net income= $24,550
Explanation:
The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>
<u></u>
<u>First, we need to calculate the total contribution margin:</u>
Total contribution margin= sales*contribution margin ratio
Total contribution margin= 103,000*0.85
Total contribution margin= $87,550
<u>Now, the net income:</u>
Net income= 87,550 - 63,000
Net income= $24,550
Answer:
The contribution margin will decrease by 2.50
Explanation:
IF sales decreases, then the contribution margin decreases.
That's because, there is less money to pay for the variable cost.
The company will also have to sale more units to break even, as now each units contribution is fewer.
Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious
It generates a positive net present value to the shareholders of an acquiring firm.
<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>
Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
KEY LESSONS
- Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
- A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.
- A merger occurs when one company acquires a majority stake in the target company, which keeps its name and legal structure.
To learn more about merger and acquisition from the given link
brainly.com/question/14195407
#SPJ4
Answer:
(a) $40
(b) $24,000
(c) 40%
Explanation:
Given that,
Selling price = $100 per unit
Variable costs = $60 per unit
Fixed costs = $2,500 per month
Contribution margin per unit:
= Selling price - Variable costs
= $100 per unit - $60 per unit
= $40
Total Contribution margin:
= Contribution margin per unit × No. of units sold
= $40 × 600 units
= $24,000
Contribution margin ratio:
= (Selling price - Variable costs) ÷ Selling price
= ($100 per unit - $60 per unit) ÷ $100 per unit
= 0.4 or 40 %
