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Otrada [13]
4 years ago
14

Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $45

0,000 per year. Last year, Steve sold 1,200 bikes. Steve’s average variable cost was __________ per bike.
Business
2 answers:
ahrayia [7]4 years ago
6 0

Divide variable costs by output. Therefore, it would be 750000 divided 1200, giving you $625.

Dahasolnce [82]4 years ago
4 0

Variable cost means a cost that changes with the change in the output. The total variable cost changes with the change in the number of units produced but the variable cost remains fixed per unit.

Steve Total Variable Cost = $750,000

Steve's average Variable Cost = Total Variable Cost ÷ Number of Bikes Sold

Steve's Average Variable Cost = $750,000 ÷ 1200

<u>Steve's Average Variable Cost = $ 625 per bike</u>

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The total sales-mix variance in terms of the contribution margin is $2,60,000 favorable.

The contribution margin is computed because of the promoting charge per unit, minus the variable fee per unit. Also called dollar contribution consistent with the unit, the degree shows how a particular product contributes to the overall earnings of the company.

Contribution margin, or dollar contribution consistent with the unit, is the promoting charge according to the unit minus the variable value in keeping with the unit. "Contribution" represents the part of income revenue that is not fed on with the aid of variable expenses and so contributes to the insurance of fixed expenses.

The closer a contribution margin percent, or ratio, is to a hundred%, the higher. The higher the ratio, the extra cash is available to cover the enterprise's overhead costs or fixed costs. However, it is much more likely that the contribution margin ratio is properly under 100%, and in all likelihood beneath 50%.

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1 year ago
Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike
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Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions.  The debt-to-equity ratio measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

The debt to equity ratio using the book value of equity in 2019 would be 2.29.

Finding the debt-to-equity ratio.

This can be found by the formula:

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ANSWER QUICKLY PLEASE: What do certifications show a potential employer? Answer in 3–4 sentences.
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Answer: That you are qualified for the job role

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Certifications allows an employees to show a current or future hiring manager that they possess the skill set and expertise needed for the job.

They help the employers hire the most competent and qualified personnel for the job as it shows you know your way around the job. And when that certification is now backed by real world on the job experience, this gives the hiring manager a sense of security.

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3 years ago
Majid Corporation sells a product for $195 per unit. The product's current sales are 42,300 units and its break-even sales are 3
evablogger [386]

Answer:

$1,389,375

Explanation:

Data provided as per the question:-

Product per unit = $195

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Margin of safety (in units) = Total sales - Break-even sales

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Vaselesa [24]

Answer:

This can be classified as an unanticipated problem.

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