Based on the cleaning and revenue costs, we can calculate that the contribution margin is <u>$150</u>
The contribution margin refers to the amount left from revenue after variable costs are removed.
<em>Contribution margin = Revenue - Variable costs </em>
The contribution margin here is therefore:
= 250 - 100
= $150
In conclusion, the contribution margin is $150.
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Answer: 19.93 minutes
Explanation:
This is the complete question
Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil and lube service at this garage is 15 minutes per car and the standard deviation is 2.4 minutes. The management wants to promote the business by guaranteeing a maximum waiting time for its customers. If a customer's car is not serviced within that period, the customer will receive a 50% discount on the charges. The company wants to limit this discount to at most 2% of the customers. What should the maximum guaranteed waiting time be? Assume that the times taken for oil and lube service for all cars have a normal distribution
The solution is attached below
When the firm cuts its dividend ratio, the earnings retention ratio will increase.
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Explanation:
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The retention ratio is the extent of profit held back in the business as held income. It is something contrary to the payout proportion, which gauges the level of benefit delivered out to investors as profits.
The maintenance proportion is additionally called the plowback proportion. Held benefit is the benefit stayed within the instead of paid out to investors as a profit. Held benefit is broadly viewed as the most significant long haul wellspring of fund for a business
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Answer:
Interest Receivable (Dr.) $250
Interest Revenue (Cr.) $250
Explanation:
Notions Co. has borrowed money from Lemming and will have to pay cost for it which is a source of fund (revenue) for Lemming. According to the Accrual concept of accounting, revenue should be recognized when earned and not when cash is received. At year end, the interest revenue of two months has been accrued, so it needs to be recognized in the Books of Lemming.
⇒ 18,750 * 8% = 1,500 p.a.
OR Interest Revenue for two months = (1,500/12) * 2 = $250.