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Jobisdone [24]
3 years ago
6

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its

variable cost per unit to $58, its contribution margin ratio will
A. decrease by about 6 percent.
B. decrease by about 8 percent.
C. increase by about 6 percent.
D. increase by about 8 percent.
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

C. increase by about 6 percent.

Explanation:

Since,

\text{Contribution margin ratio}=\frac{\text{Sales-Variable expenses}}{\text{Sales}}

Sales = $ 120,

Original expenses = $ 65

Thus, contribution margin ratio = \frac{120-65}{120}=\frac{55}{120}=0.4583\approx 0.46

New expenses = $ 58,

Thus, contribution margin ratio = \frac{120-58}{120} = \frac{62}{120}=0.5166\approx 0.52

∵ 52 - 46 = 6,

Hence, the CMR is increased by 6%.

OPTION C is correct.

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According to the small business administration, over 50 percent of all small businesses are home based. true false
Anastasy [175]

According to the small business administration, over 50 percent of all small businesses are home based. FALSE

A domestic commercial enterprise is a small l business administration, people operate from their homes. We additionally name it a domestic-based enterprise. maximum domestic companies do not have many employees. employees in such agencies generally both make money working from home or for agencies that operate as subcontractors.

Small business administration, out of the house gives some the blessings, together with time financial savings, control over running hours and situations, independence, and versatility. starting a domestic-based commercial enterprise is also substantially inexpensive than beginning a commercial enterprise in rented facilities. Small businesses are either offerings or retail operations like grocery stores, clinical shops, tradespeople, bakeries, and small production units.

Learn more about small business administration here:-brainly.com/question/13424073

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4 0
1 year ago
Select the correct answer from each drop-down menu. which sector dominates developed economies such as the united states? in dev
professor190 [17]

Legal firms and hospitals are the that dominates the economy is the consumer service sector.

<h3>Which sector dominates developed economies such as the United States?</h3>

In the Unites State which is a developed country is highly dominated by the service sector, in US about 80% of the country's output. The US service sectors companies are technology, financial services, healthcare and retail, that dominated maximum economy.

Thus, Legal firms and hospitals

For more details about sector dominates developed economies, click here:

brainly.com/question/26634414

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4 0
2 years ago
If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent, then the inflation rate is Group of answer
madreJ [45]

Answer:

Inflation = 9.5%

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Given the following data;

Nominal interest rate = 7 percent.

Real interest rate = -2.5 percent

Real interest rate = Nominal interest rate - Inflation

Inflation = Nominal interest - Real interest rate

Inflation = 7 - (-2.5)

Inflation = 9.5%

4 0
3 years ago
A small private college situated in a rural geographic setting, a research lab at a bio-tech company and an attorney could all b
Gekata [30.6K]

Answer:

The correct answer to the following question is C) Appropriate audience for an advertising campaign.

Explanation:

When a company wants to sell its product in the market , it is very important for them to understand who their target market or target audience are, because these are the people who are in interested in buying company's product not everyone in the market. So it becomes very important for the company to identify who their target audience are and to make a connection with them, so that they can be influence in to buying the company's product.

And in the given above question all of them are example of target audiences.

7 0
3 years ago
On May 7, Jernigan Company purchased on account 510 units of raw materials at $18 per unit. During May, raw materials were requi
Paladinen [302]

Answer and Explanation:

The journal entry to record the purchase is shown below;

Materials (510 units × $18) $9,180

          To Accounts payable $9,180

(To record the purchases)

Here the material is debited as it increased the assets and credited the account payable as it also increased the liabilities

Therefore the above journal entry should be passed

3 0
3 years ago
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