A firm expects to sell 25,500 units of its product at $11. 50 per unit and to incur variable costs per unit of $6. 50. total fixed costs are $75,000. the total contribution margin is $127500.
The contribution margin is computed as the promoting rate per unit, minus the variable fee in keeping with the unit. additionally referred to as greenback contribution in keeping with the unit, the measure shows how a specific product contributes to the general profit of the organization.
The closer a contribution margin percentage, or ratio, is to 100%, the better. The better the ratio, the more money is available to cowl the commercial enterprise's overhead expenses or fixed prices. However, it is more likely that the contribution margin ratio is well below one hundred%, and possibly beneath 50%.
Contribution margin, or greenback contribution per unit, is the selling rate per unit minus the variable price in step with the unit. "Contribution" represents the part of sales revenue that is not consumed through variable expenses and so contributes to the coverage of constant fees.
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Answer:
It is decrease in accounts receivable (D)
Explanation:
An Increase in Inventory : the effect of this transaction will reduce the cash position of the company because more cash is being tied down as inventory at a cost.
A decrease in accounts payable : Here, more cash is being paid to off-set liability owed to suppliers and this will reduce company's cash position.
Preferred dividends declared and paid : This is an outflow of cash paid to equity investors as a return on their investment which will impact negatively on the company cash position.
Decrease in accounts receivable : This is an inflow of cash from the settlement of trade receivable owed by our customers which will impact positively on our cash position.
Answer:
There is unrealised profit on the equioment sold by Play inc to Statetion Corp.
the Adjustment include
- Deduct net unrealised profit of $16,000 from Equipment
- Deduct net unrealised profit of $16,000 from Group(consolidated )retained earnings.
Amount to be recognized as unrealized profit in the consolidated income statement is $16,000
Explanation:
Computation of Net unrealized profit
Unrealized profit ( $50,000 - $30,000) 20,000
Depreciation on Unrealized profit( 20,000/5) <u> (4,000</u>)
Net unrealized profit <u> 16,000</u>
Answer:
<em>1. When the price of fresh fish increases 5%, quantity demanded decreases 10%. The price elasticity of demand for fresh fish is elastic.</em>
<em>2. The determinants of elasticity include d) all of the above.</em>
<em>3. Cross-price elasticity of demand measures the response in the d) quantity of one good demanded to a change in the price of another good.</em>
<em>4. A value of price elasticity of demand equal to 2 means that b) quantity demanded falls by two times the amount of an increase in price.</em>
Explanation:
<em>Price elasticity of demand = % change in quantity demanded of a good / % change in price of the good</em>. Value greater than 1 implies quantity demanded is price elastic, equal to 1 implies quantity demanded is price unitary elastic and smaller than 1 implies quantity demanded is price inelastic.
<em>Cross Price Elasticity of demand = % change in quantity demanded of a good / % change in price of another good</em>.
For rest, refer to the answer.
Answer:
B. Deciding whether to factor out of the performance measure items over which the foreign operation’s manager has no control
C. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency and
Explanation:
Foreign operations refer to an entity that could be in terms of an associate, subsidiary, jointly controlled in which the activities are based in a country irrespective of the entity i.e. reported
Therefore in the given case, the issued can be with the performance measures that have no control and it should depend upon the parent company in which the currency is reported
Hence, the correct option is B and C
