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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:

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Increase price value profit becomes higher than price, what happens to a company
5 0
3 years ago
2. The city of Glendale borrows $48 million by issuing municipal bonds to help build the Arizona Cardinals football stadium. It
lisov135 [29]

Answer:

$5,917, 965.66 per year

Explanation:

The $48 million will represent the value of all annuities after ten years. The get the amount the city of Glendale should be saving each year, we apply the present value of annuity formula, which is as below.

P   = PV ×  r / 1 − (1+r)−n

P is value of each payment

PV = present value of annuity : $48,000,000.00

r =interest rate : 4 % = 0.04

n: number of periods: 10

P = $48,000,000 x {0.04/(1-(1+0.04)-10}

P = $48,000,000 x {0.04/ 1-0.6755641688)

P =$48,000,000x (0.04/0.3244358312)

P= $48,000,000 x 0.123290951

P= 5,917, 965.66 per year

3 0
3 years ago
Precise Electronics Inc. has projected EBIT to be $225,000 for next year. Their tax rate is 21% and there is $`500,000 in equity
777dan777 [17]
the answer is no just took test
4 0
3 years ago
the maxim company purchased a building for $500,000. the building was appraised at $575,000. which accounting principle requires
love history [14]

Business entity assumption is required to maxim to record the building at $500,000.

<h3>What is Business entity assumption?</h3>

Business entity assumption, also known as separate entity assumption or the economic entity concept, is an accounting principle that argues that all businesses must maintain their financial records independently of their owners and other businesses. All revenue generated by the company's operations must be reported as revenue, and all expenses must be those directly related to the maxim. Any owner's personal expenses shouldn't be charged to the business. Due to the precise separation of the Business entity assumption, the firm may be examined for tax and profitability using accurate financial data rather than a maxim combination of personal and business money.

To learn more about Business entity from the given link

brainly.com/question/14117518

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8 0
1 year ago
No having enough money for the shoes you want means?
Mazyrski [523]

Answer:

That you can't get the shoes that you want because you don't have enough money or go to work to get some more money for your shoes that you want

8 0
2 years ago
Read 2 more answers
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