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1 year ago

Contribution margin ______.

Business

1 answer:

PolarNik [594]1 year ago

3 0

Contribution margin covers fixed cost and profit is first used to cover variable expenses.

The contribution margin refers to sales revenue minus variable expenses. So if the sales revenue doubles, it will lead to the increase in variable costs. Contribution margin shows the aggregate amount of revenue which is available after variable costs, to cover fixed expenses and provide profit to a business.

The amount of money a business has to cover its fixed costs and contribute to net profit or loss after paying variable costs is known as contribution margin. Thus, it also measures whether a product is generating enough revenue to pay for fixed costs and determines the profit generated by it.

Hence, option C is correct.

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Tax refunds:

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The answer is A, occur when a taxpayer's income tax withholding exceeds what they owe.

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2 years ago

Manuel Rios wishes to determine how long it will take an initial deposit of $13 comma 000 to double. a. If Manuel earns 9% ann

Lorico [155]

Answer:

See Below

Explanation:

This is a problem of compound interest. The formula is:

$F=P(1+r)^t$

Where

F is the future value

P is the present value

r is the rate of interest

t is the time in years

P = 13,000

To double his money, that means, F = 26,000

Now, r = 9% = 0.09, so time it takes:

$F=P(1+r)^t\\26,000=13,000(1+0.09)^t\\2=1.09^{t}\\t=\frac{Ln(2)}{Ln(1.09)}\\t=8.04$

So, its gonna take about 8.04 years to double

Similarly, here we just use r = 0.06, so the calculation is:

$F=P(1+r)^t\\2=1.06^t\\t=11.9$

So, its gonna take about 11.9 years to double

Here, the r is 11% or 0.11

So, the time it will take:

$F=P(1+r)^t\\2 = 1.11^t\\t=6.6$

So, it is going to take about 6.6 years to double

The amount of time it takes to double his money decreases as the interest rate increases and the time increases as interest rate decreases.

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2 years ago

What market structure has many relatively small buyers and sellers, a standardized product, good information to both buyers and

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Answer:

Perfect Competition

Explanation:

Perfect competition is a market characterized by many buyers and sellers that have full information and faces no barrier in entry and exit of the markets. It is the ideal form of market structure where competition is at is greatest possible value. The numerous buyers and sellers are engaged in trade of a homogeneous good in the market. It is also characterized by no long run economic profit and no control over prices.

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3 years ago

Read 2 more answers

Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On Decemb

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Answer:

Dr. Trading securities $4,800

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3 years ago