Answer:
variable and fixed costs.
Explanation:
The format of the contribution margin income statement is presented below:
Sales XXXXX
Less: Variable cost (XXXXX)
Contribution margin XXXXX
Less: Fixed cost (XXXXX)
Net income or loss XXXXX
Based on this we can concluded that the contribution margin income statement classified into two cost i.e variable and fixed cost
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
The correct answer is C. Codes
such laws are called codified laws. Statues are similar but on a smaller scale and apply only to those who participate, while executive orders are created by the president in times of trouble.
Answer:
187,500 units.
Explanation:
Fixed cost= $750,000
Variable cost= $2
Price= $6
To calculate the break-even quantity, we use the formula
Break even= Fixed cost ÷ (Price - Variable cost)
Let's input the values of each
$750,000/($6 - $2)
= $750, 000/ $4
= 187,500 units.
Therefore the break even is 187,500 units.
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