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lina2011 [118]
1 year ago
8

Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 800,000 units, the c

ompany pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $70,000 are fixed costs. What is the amount of contribution margin per unit?
Business
1 answer:
vaieri [72.5K]1 year ago
5 0

Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit

<h3>How is the contribution margin found?</h3>

First, find the variable costs:

= 300,000 + (250,000 - 70,000)

= $480,000

The contribution margin per unit is:

= (Sales - variable costs) / number of units

= (800,000 - 480,000) / 800,000

= $0.40 per unit

Find out more on contribution margin at brainly.com/question/24309427

#SPJ1

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Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The in
topjm [15]

Complete Question:

Akram owns a small farm.He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbors farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares.

Requirement. Identity two types of short-term finance Akram could use when the farm income is low

Answer with its Explanation:

The two types of short term finances are as under:

  1. Merchant Cash Advance: It is also known as supplier payables but in fact it is actually an cash advance by supplier to promote its sales by allowing credit for a short term. It doesn't what level of profits the company is earning, the supplier always allow small period for payment of its goods.
  2. Invoice Financing: It helps the company borrow money from money lenders (mostly banks) against the debtors accounts. This is usually a short term loan with option to expand both time and money if the company has proven to growth and better credit control. The invoice finacing doesn't effect the borrowings in short term if the business profits are low because for qualifying for such loan the company must have better cash postion. Though higher profits might help in securing the short term loan by using invoice financing but cash generation is the key requirement here.
4 0
3 years ago
Ashton wants to generate interest in the new branch of his hobby stores that is opening next week. He plans to offer temporary p
faust18 [17]

Answer:

B. Price promotion

Explanation:

Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.

Price promotion is the combination of two words "price" and "promotion".

Price refers to the amount of money paid by consumers to purchase goods and services.

Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.

Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.

3 0
3 years ago
Last year, Bad Tattoo Co. had additions to retained earnings of $4,780 on sales of $95,560. The company had costs of $75,720, di
fredd [130]

Answer:

e. $6,042

Explanation:

Net income of Bad tattoo co. = Addition of retained earnings + Dividends

= $4,780 + $2,980

= $7,760

Income before tax of Bad tattoo Co = Net income / (1-tax rate)

= $7,760 / (1-34%)

= $7,760 / 0.66

= $11,758

But,

Income before tax = Sales - Costs

- Depreciation expense - Interest expense

$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040

$11,758 = $19,840 - Depreciation expense - $2,040

Depreciation expense = $19,840 - $11,758 - $2,040

Depreciation expense = $6,042

8 0
3 years ago
our Grandfather wants to establish a scholarship in his father’s name at a local university and had stipulated that you will adm
inn [45]

Answer:

The correct answer is Option A. you will need to deposit $111,111 so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.

Explanation:

Perpetuity is the cash flows to be receivable for an unspecified period of time. The present value of a perpetuity is calculated as the cash flows divided by the interest rate provided.  

Given data;

Amount needed to be deposited = $5000

Interest rate = 4.50%

Present Value of Perpetuity = Cash Flows ÷ Interest rate  

= $5000 ÷ 0.045

= $111,111

3 0
2 years ago
Products that appeal to mothers have evolved since mothers are no longer homogeneous like before. Instead, there are traditional
cupoosta [38]

Answer: Change in lifestyle

Explanation:

The lifestyle of current day mom's is very different from what was obtainable in the past, therefore manufacturers need to adjust their products to suit the new lifestyle of current day mom's. Lifestyle here means the behavior, likes and dislikes of current day mom's.

5 0
2 years ago
Read 2 more answers
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