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1 year ago

What is the total sales-mix variance in terms of the contribution margin?

Business

1 answer:

Karo-lina-s [1.5K]1 year ago

3 0

The total sales-mix variance in terms of the contribution margin is $2,60,000 favorable.

The contribution margin is computed because of the promoting charge per unit, minus the variable fee per unit. Also called dollar contribution consistent with the unit, the degree shows how a particular product contributes to the overall earnings of the company.

Contribution margin, or dollar contribution consistent with the unit, is the promoting charge according to the unit minus the variable value in keeping with the unit. "Contribution" represents the part of income revenue that is not fed on with the aid of variable expenses and so contributes to the insurance of fixed expenses.

The closer a contribution margin percent, or ratio, is to a hundred%, the higher. The higher the ratio, the extra cash is available to cover the enterprise's overhead costs or fixed costs. However, it is much more likely that the contribution margin ratio is properly under 100%, and in all likelihood beneath 50%.

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erik [133]

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3 years ago

What is the differences and similarities between rental goods services and non goods services

alexira [117]

Answer and Explanation:

Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.

Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.

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2 years ago

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6300, $11,300, and $

sladkih [1.3K]

Answer:

$27,642.86

Explanation:

To determine the price Marko will pay today to buy ABC Co, one has to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow in year one = $6300

Cash flow in year two = $11,300

Cash flow in year three = $17,500

I = 11%

Present value = $27,642.86

To find the present value using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 years ago

Breonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, con

maksim [4K]

Answer:

$35,000

Explanation:

Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).

Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000

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3 years ago

The allowance for doubtful accounts currently has a debit balance of $200. The company's management estimates that 2.5% of net c

lidiya [134]

Answer:

Bad debt expense (w/o allowance) = $2,875

Bad debt expense ( with allowance) = $2,675.

Explanation:

According to the scenario, the given data are as follows:

Net credit sales = $115,000

Uncollectible percentage = 2.5%

So, we can calculate the bad debt expense without Allowance for doubtful accounts by using following method:

Bad debt expense ( W/o allowance) = $115,000 × 2.5%

= $2,875

After Allowance for doubtful expense

Bad debt expense = $2,875 - $200

= $2,675

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3 years ago