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Anastasy [175]
3 years ago
14

Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu

tion margin ratio for Young Company
Business
1 answer:
xenn [34]3 years ago
6 0

Answer:

41 percent

Explanation:

Given : Budgeted Sales $112,900,000

            Fixed Costs $25,000,000

            Variable Costs $66,611,000

Contribution margin =  Net Sales - Variable costs

                                  = $112,900,000 - $66,611,000

                                  = $ 46,289,000

Contribution Margin Ratio = \frac{Contribution\ Margin}{Net\ Sales}  = \frac{46289000}{112900000} =  41%

Contribution margin ratio indicates the percentage of sales remaining so as to cover a firm's fixed expenses. It also represents how much percentage of sales is required to cover the variable costs.

It is also expressed as , 100 - Variable cost ratio (in percentage)

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Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t
Mkey [24]

Answer:

B) $617,000

Explanation:

Issuance capital of 500,000 shall remain constant. Out of the current year net earnings 25000 we are paying 2000 as dividend so, that adds to the owners equity = 23000.

Total liabilities = total assets = 500000 + 23000 + 94000 = 617000

8 0
3 years ago
Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p
julia-pushkina [17]

Answer:

The correct answer is $1,836,742.42.

Explanation:

According to the scenario, the given data are as follows:

EBIT = $373,000

Cost of equity = 13.2%

Tax rate = 35%

So, we can calculate the unlevered value of the firm by using following formula:

Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY

By putting the value, we get

Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%

= $373,000 × 0.65 ÷ 0.132

= $242,450 ÷ 0.132

= $1,836,742.42

6 0
3 years ago
Evaluate South Africa's approach to redistribution of wealth and income ​
harina [27]

Answer:anser is

Explanation:

E

6 0
3 years ago
Bramble Corp. incurs the following costs to produce 13000 units of a subcomponent: Direct materials $10920 Direct labor 14690 Va
Mumz [18]

Answer:

$4,850

Explanation:

The computation is shown below:

Total cost when the production is 13,000 units

Direct materials $10,920

Direct labor $14,690

Variable overhead $16,380

Total $41,900

And, the other case

Their new cost on supplier offer is

= $2.85 × 13,000 units

= $37,050

In the case when the order is accepted So the net income would increased by

= $41,900 - $37,050

= $4,850

7 0
3 years ago
As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
erma4kov [3.2K]

Answer:

The organization structure is not clearly defined, Managers are performing duties in various departments at a time.

Explanation:

San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.  

Questions 1: Planning, organizing, leading and controlling

Question 2: The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.

Question 3: The profits of San consulting will rise as there will be less duplication of work and every employee will be able to focus on their own task and will work with efficiency.

Question 4: Matrix. The matrix organizational structure is not suited in this organization. The right organizational structure for San consulting will be Functional Structure.

Question 5:

(i) The profits for San Consulting will decline

(ii) The profit will rise because employee will focus more on their specific tasks.

1B. Yes agree. The managers need to focus on the external environment as well to identify the opportunities and threats present which can stimulate changes for the organization.

5 0
3 years ago
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