Sales: $914,000
Variable Costs: $498,130
Operating Income: $196,000
Contribution Margin Ratio = ?
Formula:
Contribution Margin Ratio = (Sales – Variable Costs) / Sales
Solution:
Contribution Margin Ratio = ( $914,000 - $498,130) /
$914,000
Contribution Margin Ratio = 45.5% (Answer)
Answer:
Explanation:
Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value
Cash Investment at F0: <em>230,000/2 = 115,000</em>
present value of 7,500 salvage value:
Maturity 7,500.00
time 7 years
MARR: 10% = 0.1
PV <em> 3,848.69 </em>
<u>Then, we need to calculate the present value of the loan discounted at 10%</u>
half the investment is finance: 230,000 / 2 = <em>115,000</em>
Then, this capitalize 2 year at 8% before the first payment:
Principal 115,000.00
time 2 year
MARR: 10% = 0.08000
Amount 134,136.00
Now we need to discount this loan at 10% which is our rate of return:
Maturity 134,136.00
time 2.00
MARR: 10% = 0.1
PV <em>110,856.20 </em>
Finally: we add this values to get the resent worth:
<em>115,000 + 110,856.20 - 3,848.69 = </em><em>222,007.51</em>
<em />
Last step, we calculate the PMT of the present worth:
PV 222,007.51
time 7 years
MARR: 10% = 0.1
C $ 45,601.564
<em />
Answer:
A- Gill, a credit customer
Explanation:
A journal entry involves the process of keeping the records of business transactions made by an organization.
Journal entries are mainly used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
A sales ledger can be defined as an accounting book that comprises of the individual account of each customer of a business firm and records the money received for goods or services purchased, whether the payment has been received or not.
Simply stated, a sales ledger sequentially records all sales that have taken place in a business, whether or not payment have been received.
This ultimately implies that, a sales ledger contains accounting information on all sales transaction made by a company including, money received for its goods and services and money owed by its customers.
Hence, the account which will appear in the sales ledger is that of Gill, a credit customer.
<u>Calculation of Edelman's market/book ratio:</u>
The market/book ratio is calculated with the help of following formula:
Market/book ratio = Market price per share / Book value per share
The Book value per share can be calculated as follows;
Book value per share =Common Equity/ Shares of common stock outstanding
= 8,000,000,000 /500,000,000
= 16
Hence ,
Market/book ratio = 25/16 = 1.56
Hence, Edelman's market/book ratio is <u>1.56</u>