Answer: $7.20 per minute
Explanation:
Find out the profitability of each product as Contribution Margin per minute.
Magnifico
Contribution margin per minute = (Selling price - Variable cost) / minutes on the constraint
= (335.18 - 259.26) / 7.5
= $10.12 per minute
Bellissimo
= (228.46 - 173.08) / 4.3
= $12.88 per minute
Lovely
= (199.21 - 159.61) / 5.5
= $7.20 per minute
Their least profitable product is $7.20 per minute.
The machine does not have sufficient time to satisfy the needs of Lovely so they will have to pay more to acquire more of the resource but they should not pay anything more than $7.20 per minute as this is their contribution margin for the product. and anything more would result in a loss.
<em>Options are most probably for another variant of the question. </em>
Answer:
$11.8 million
Explanation:
Particulars Amount
Sales $24 million
Less: Operating costs $7 million
Less: Depreciation <u>$4 million</u>
EBIT $13 million
Less: Tx at 40% on EBIT <u>$5.2 million</u>
Net income before interest $7.8 million
Add: Depreciation <u>$4 million</u>
Operating cash flow <u>$11.8 million</u>
Answer:
Public or Private company!
Explanation:
I don't know exactly what you're asking for here, but I believe the blank could be a private company.
If most (or only) Ahmad's family owns stocks of this company it would have to be a private company because a small group of people is the stockholders. But let us just say Ahmad's family is super-rich and they invested in BioTechno, which is a mid-cap stock. They own around 40% of the stocks, but a lot of others also own this stock. In that scenario, it would be a public company!