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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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Leadership, productivity and self-direction are examples of?
Mariulka [41]

Life and career skills.

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3 years ago
In which situation would a certificate of deposit (CD) be the best banking choice
anzhelika [568]

A certificate of deposit (CD) would be the best banking choice when the interest rate is determined ahead of time and there is an assurance to get back what you put in plus interest once the CD matures.  If you leave the money alone during the investment period then the bank will pay you an interest rate slightly higher than what you would have earned in a money market or checking account. Thus, all gains from certificate of deposits are taxable as income unless they are in a tax-deferred (IRA) r tax-free (Roth IRA) account. 

3 0
3 years ago
Read 2 more answers
Corona Co. is expecting to receive 100,000 British pounds in one year. Corona expects the spot rate of British pound to be $1.49
Grace [21]

Answer:

Explanation:

1st strategy : Selling pound forward

The spot rate of the pound is quoted at $1.51.

The one-year forward rate exhibits a 2.65% premium.

The one-year forward rate = 1.51 ( 1+ 0.0265)

= $ 1.55

Dollars received = 100000 * 1.55 = $155000

2nd strategy : Buying put option

The strike price of put = $1.54

premium on option is $.03

Amount received per option = $ 1.54 - $ 0.03 =$1.51

Total Dollars received = 100000* 1.51 = $ 151000

the best possible hedging strategy is Selling pound forward and receiving $155000

7 0
3 years ago
Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Rela
omeli [17]

Answer:

Lake Co.

Current Liability for Advances from Customers in Dec. 31, 2021 balance sheet:

Amount to report as current liability for advances from customers:

= $127

Explanation:

Advances from Customers:

Dec. 31, 2020 balance       $120

Cash received                      189

Total liability                      $309

Earned Revenue                 182

Current liability                  $127

Advances, which Lake Co., received from customers for orders not yet fulfilled are recorded as deferred revenue or liabilities because Lake Co. is still owing the respective customers until the services or goods are provided.  Earned Revenue is the value of revenue that would be reported in the income summary for which exchange of value or promises had been completed.

8 0
3 years ago
Bloomington Inc. exchanged land for equipment and $2,700 in cash. The book value and the fair value of the land were $105,400 an
erica [24]

Answer:

The answer is c. Equipment: 87,200; Gain/(loss): (15,500).

Explanation:

Since the exchange has commercial substance,

- Fair value of the equipment is equal to: Fair value of the land - Cash consideration receipt = 89,900 - 2,700 = $87,200.

- The disposal of land in the Balance sheet following the exchange needs to account for the differences between Book value of land and Fair value of land. Since Fair value is now smaller than Book Value, a Loss has to be recognized at the amount calculated as (Fair value - Book value) = (89,900 - 105,400) = $(15,500).

Thus, the answer is c. $87,200 $(15,500).

5 0
3 years ago
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