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Ber [7]
1 year ago
7

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.

To learn more about contribution margin here:

brainly.com/question/13910616

#SPJ4

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Explain how insurance companies use statistics.
Luda [366]

Answer:

 Statistics is used to determine what risk an insured poses to an insurance company, what percentage of policies is likely to pay out, and how much money a company can expect to pay out in claims

7 0
3 years ago
The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flo
kirill115 [55]

Answer:

B. False

Explanation:

Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.

8 0
3 years ago
Hi there !
Zanzabum

Answer:

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period while revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.

6 0
2 years ago
Read 2 more answers
Exchange rates are an effective way to analyze the price of one currency in terms of another currency with _____________________
nalin [4]

Exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

<h3>What do you mean by exchange rate?</h3>

Exchange rates refer to the value of one's nation's currency over the currency of another nation.

An exchange rate can be fixed or free-floating. A fixed exchange rate is pegged to the value of other currency and a free-floating exchange rate may rise or fall due to changes in the foreign exchange market.

Thus, exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.

Learn more about the exchange rate here:

brainly.com/question/14930716

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2 years ago
What term describes the study of the rights and duties of citizens?
bija089 [108]

Answer: Civics is the study of the rights and duties of citizens.

Explanation:

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