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shepuryov [24]
4 years ago
12

What is the key factor in determining sales mix if a company has limited resources?

Business
2 answers:
kirza4 [7]4 years ago
8 0

Answer:

The key factor is the Contribution margin per unit of limited resources.

Explanation:

To begin with, it is important to understand the concept of contribution margin.

Contribution margin is simply the figures arrived at by netting off variable elements of cost against the selling price. That is, a contribution margin is derived when the sales is subjected to variable components of cost that generate it.

Now, we have the Contribution margin per unit of the limited resources. This is simply a study targeted at knowing, per unit basis, an organization's contribution margin. Thus, contribution margin per unit of the limited resources can be derived by dividing the total contribution available with the total number of the limited resources.

That is = Contribution margin/number of limited resources available.

The strategic importance of contribution margin per unit of the limited resources is that, an organization is able to underline its financial performance, and how well it can cater for its fixed cost, after considering the variable elements.

To then determine the effective sales mix, it is important to take a proper look at the contribution margin. A good Sales mix will often have an exerted direct influence on contribution margin. Sales is an integral component is determining the unit contribution of a product. Hence, the key factor in determining the proper and effective sales mix is the contribution margin per unit of limited resources.

Naya [18.7K]4 years ago
6 0

Answer:

Contribution margin per unit of limited resource

Explanation:

When a company has a limited resource on which the generation of income depends, it is to decide that the company cannot generate more income because it does not have more of that resource, for example space in M2 for commercialization or storage, or a manufacturing equipment, it must Investigate what is the contribution margin to the unit of that limited resource and manage the product that has the greatest.

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A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ____. Group of answer ch
Dmitriy789 [7]

Answer:

supplier development.

Explanation:

A degree of aggressive procurement involvement not normally encountered in supplier selection refers to supplier development.

Supplier development is a business strategy and it involves the process of working one-to-one basis or closely with certain suppliers in order to improve and boost their performance for the benefit of growing and developing an organization.

It is a concept that is also similar to reverse marketing in business management. It is a strategic business plan which is aimed at improving the quality and performance of suppliers by availing them resources they need to achieve success and have competitive advantage in the supply chain.

For instance, a buying organization might decide to implore suppliers to enter an emerging market.

Also, another example of the supplier development is, in order to prevent the wide-spread of Corona virus, CDC is ensuring its suppliers of ppe (personal protective equipment) are continuously supplying face masks.

8 0
3 years ago
Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou
katovenus [111]

Answer:

$75,000

Explanation:

Calculation for the annual dividend on the preferred stock

Using this formula

Annual Dividend= Number of shares × Par value × Dividend %

Let plug in the formula

Annual Dividend= 10,000 shares × $125 × 6%

Annual Dividend= $75,000

Therefore the annual dividend on the preferred stock will be $75,000

5 0
3 years ago
In 2018, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method.
Sati [7]

Answer:

In Barton and Barton Company's general journal, entry required include:

Debit Retained Earnings Account with $8.2 million

Credit Opening Inventory with $8.2 million

Being reversal of overstated inventory due to change from FIFO to Average cost method.

Explanation:

The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million.  The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.

The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.

The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first.  The inventory cost is therefore valued with the most recent quantity and cost price.

On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period.  This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.

Both methods are estimates that produce different results and affect the reported net income differently.  There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.

3 0
3 years ago
A situation in which monetary policy is expansionary prior to an election and contractionary after an election is known as the â
Advocard [28]

A situation in which monetary policy is expansionary prior to an election and contractionary after an election is known as the Political business cycle.

What is expansionary monetary policy and contractionary monetary policy?

Simply put, expansionary monetary policy enlarges (increases) the money supply, whereas contractionary monetary policy reduces (contracts) the amount of a nation's currency available.

What is Political business cycle?

A political business cycle is a change in economic activity brought on by outside political actors. The term "political business cycle" is mostly used to refer to the economic expansion that occurs right before an election to increase the likelihood that the current administration will be reelected. Empirical evidence of political business cycles is still ambiguous despite several attempts to prove it.

Learn more about Political business cycle: brainly.com/question/13084281

#SPJ4

8 0
1 year ago
BC 'n D just paid its annual dividend of $.60 a share. The projected dividends for the next five years are $.30, $.50, $.75, $1.
Lemur [1.5K]

Answer:

$7.60

Explanation:

Find PV dividend per year at 14% discount rate;

0.30 / 1.14 = 0.2632

0.50 / 1.14² = 0.3847

0.75 / 1.14³ = 0.5062

1 / (1.14^4) = 0.5921

1.20 / (1.14^5) = 0.6232

Find the PV of the terminal cashflow;PV = \frac{\frac{1.40}{0.14} }{(1.14)^{5} }  = 5.2308

Next, sum up the PVs to find the price of the stock today;

Price = 0.2632 + 0.3847 + 0.5062 + 0.5921 + 0.6232 + 5.2308

= $7.60

6 0
3 years ago
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