1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
likoan [24]
3 years ago
7

Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will

be on the product’s contribution margin. Assuming no inventory carry costs, what will Cone's contribution margin be if the price is lowered?
Business
1 answer:
lozanna [386]3 years ago
7 0

Answer:

The contribution margin will decrease by 2.50

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

IF sales decreases, then the contribution margin decreases.

That's because, there is less money to pay for the variable cost.

The company will also have to sale more units to break even, as now each units contribution is fewer.

Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious

You might be interested in
Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contr
True [87]

Answer:

Effect on income= $115,000 decrease

Explanation:

Giving the following information:

Fixed costs= $45,000

Number of units= 20,000

Unitary contribution margin= $8

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income=  decrease in fixed costs - decrease in contribution margin

Effect on income= 45,000 - 20,000*8

Effect on income= $115,000 decrease

4 0
3 years ago
Identify which type of sampling is​ used: random,​ systematic, convenience,​ stratified, or cluster. To determine customer opini
Ganezh [65]

Answer:

E. Cluster

Explanation:

Cluster sampling is a type of sampling method in which the population under study is divided into different groups known as clusters before simple random samples are selected from each population clusters. The analysis of such population is carried out based on the sampled clusters.

This method is adopted when a researcher does not have access to the whole population under research.

Advantages of cluster sampling.

The research method only needs fewer resources.

The sample under review is feasible.

Note: Cluster sampling is not as accurate as simple or stratified random sampling.

3 0
3 years ago
Read 2 more answers
Since telecommuting has become more common, workers have needed to develop communications skills that _______.
Alexxx [7]

Correct Answer, D all of the above. Each answer is a positive source of communication for telecommuters.


7 0
4 years ago
Read 2 more answers
What is the study of the ways in which money is created and used in society?
arlik [135]
Choice B. Economics is the study of the ways in which money is created and used in society.

Hope this helps and have a great rest of the day!! :)
4 0
3 years ago
_____________ are a form of financial instrument through which corporations and governments borrow money from financial investor
makkiz [27]

Answer:

Bonds

Explanation:

Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.

When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.

Bonds can be municipal bonds or corporate bonds.

Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.

3 0
3 years ago
Other questions:
  • Wither Spoon Company requires a new manufacturing facility. It found three locations; all of which would provide the needed capa
    8·1 answer
  • Which of the following correctly describes an example of a secondary competitor?
    9·2 answers
  • You just started working for a company, where should you first look to find a confidentiality policy concerning information you
    9·1 answer
  • Under what circumstances would a defendant be wise to settle out of court?
    5·2 answers
  • 5. Suppose a novice investor buys a call option on 45,000 barrels of oil with an exercise price of $45 per barrel and simultaneo
    8·1 answer
  • Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on
    5·1 answer
  • What two elements normally must exist before a person can be held liable for a crime
    10·2 answers
  • Which of the following is not a reason for passing the equal pay act of 1963​
    14·1 answer
  • Find the APR in each of the following cases. EAR Number of Times Compounded APR 15.3% Semiannually 8.7% Monthly 9.4% Weekly 14.9
    8·1 answer
  • Can I Plss get some help on this
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!