Answer:
Definition:
Contribution margin ratio is defined as, the difference between revenue and variable costs of the entity, expressed as percentage of sales.
Explanation:
Basically, the contribution margin ratio indicates that how much of sales amount is available to the entity to cover the fixed expenses incurred by the entity. It can be calculated using the following formula.
Formula= Contribution of the entity/ Sales Revenue of the entity.
If the contribution margin ratio of any entity is for example 50%, it will indicate that 50% of the sales amount is available to the entity tocover the fixed expenses which are to be incurred by it.
Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
And, the balance sheet comprises of the assets and liabilities. With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.
The preparation of the statement of stockholders’ equity and the balance sheet is presented in the spreadsheet. Kindly find the attachment below:
If a person doesn't trust you then they will tell other people and the other people won't trust you
Answer:
D
Explanation:
An economic model is a simplified abstraction of reality. An economic model aims to present economic reality in a simplified form. it also aims to make accurate prediction consistent with reality.
for example, the law of demand is an example of an economic model.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
this economic model is true because rational human beings tend to purchase more of normal goods when the price is lower than when the price is higher.