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1 year ago

A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?

1 answer:

3 0

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

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On January 10, Chen Co. issued an $80,000, 6%, 90-day note payable to Rao Co. Using a 360-day year, what is the total interest e

Yanka [14]

Answer:

d. $1,200

Explanation:

The computation of the interest expense is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $80,000× 6% × (90 days ÷ 360 days)

= $1,200

We simply apply the simple interest formula

Since the number of days and the total number of days are given so we considered the same for the computation part.

4 0

3 years ago

Deere is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the fo

Sveta_85 [38]

Answer:

5.95

Explanation:

Deere inventory turnover for 2017 ratio is:

Formula for Inventory Turnover Ratio= Cost of Goods sold / Average Inventory

Where Average Inventory = (Previous Inventory + Current Inventory) / 2

= ($2,267 + $2,999) / 2

=$5,266 / 2

=$2,633

Average Inventory = $2,633

Therefore, Inventory Turnover Ratio = $15,661 / $2,633 = 5.9479 = 5.95

Deere Inventory Turnover for 2017 Ratio is 5.95.

7 0

3 years ago

Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument sho

masha68 [24]

The instrument that Shawn must use is “payable to the order of” before the name of the payee.

<h3>Requirements of Negotiability </h3>

The first of the four major considerations is whether or not a paper is negotiable, and it is one that nonlawyers must address.
Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
In a negotiable instrument, the only permissible promise or direction is to pay a particular sum of money. Any other promise or command renders negotiability null and void
This restriction exists to prohibit an instrument from having an uncertain value.
If the bearer of a negotiable instrument had to examine whether a provision or condition had been met before the thing had any value, the utility of the object as a substitute for money would be severely diminished.

Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.

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5 0

1 year ago

The required return on the stock of Moe's Pizza is 10.8 percent and aftertax required return on the company's debt is 3.40 perce

garik1379 [7]

Answer:

The required return for the new project is 6.87%

Explanation:

In order to calculate the required return for the new project we would have to calculate the Weighted Average Cost of Capital (WACC) adjusted by risk adjustment factor .

The Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]

After -tax Cost of Debt = 3.40%

Cost of Equity = 10.80%

Weight of Debt = 0.39

Weight of Equity = 0.69

Therefore, the Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]

= [3.40% x 0.39] + [10.80% x 0.69]

= 1.32% + 7.45%

= 8.77%

The required return for the new project = Weighted Average Cost of Capital – Risk Adjustment Factor

= 8.77% - 1.90%

= 6.87%

The required return for the new project is 6.87%

8 0

3 years ago

A job cost sheet of Sandoval Company is given below.

OLEGan [10]

Answer:

A. Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

B. 125%

C. Total cost $7,760

Unit cost $3.104

Explanation:

1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :

Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

2. Calculation to determine the predetermined manufacturing overhead rate

Predetermined overhead rate=$550/$440*100

Predetermined overhead rate=125%

Therefore the predetermined manufacturing overhead rate is 125%

3. Calculation to determine the total cost and the unit cost of the completed job

TOTAL COST

Direct Material $4, 700

($700 + $900 + $1,600 + $1,500)

Add Direct Labor $1,360

($440 + $380 + $540)

Add Manufacturing Overhead $1,700

($550 + $475 + $675)

Total Cost $7,760

UNIT COST

Unit cost= $7,760/ 2,500

Unit cost=$3.104

Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104

8 0

2 years ago