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vredina [299]
3 years ago
8

EXERCISE 5–4Computing and Using the CM Ratio [LO5–3] Guided Example 5-4 Last month when Holiday Creations, Inc., sold 50,000 uni

ts, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: What is the company’s contribution margin (CM) ratio? Estimate the change in the company’s net operating income if it were to increase its total sales by $1,000.
Business
1 answer:
kari74 [83]3 years ago
8 0

Answer:

40% and $400

Explanation:

For computing the change in net operating income, first we have to determine the contribution margin ratio which is shown below:

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $4 -$2.4

=$1.6

And, Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = (1.6) ÷ (4) × 100 = 40%

Since the sale is increased by $1,000, so the change would be

= $1,000 × 40%

= $400

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Jacob has built up a wide network of contacts, clients, and local business neighbors since moving to Central City five years ago
Nata [24]

Answer:

The answer is network.

Explanation:

Network is a way of interacting with others to exchange some information or establish social contacts. Since Jacob has built up a wide range of contacts, clients, and local business neighbors over the years as mentioned in the statement, he will generally leverage on the network he has developed with these individuals as he intend to move to another phase of his career.

7 0
3 years ago
Read 2 more answers
For over 40 years, Top Manufacturing produced only one product, a car part for Moraine Assembly (the Moraine, Ohio, General Moto
ohaa [14]

Answer:

The statement is true.

Explanation:

The statement is true and correct that the Top company is a vulnerable company as vulnerable in business means that the company is weak and the reason due to which the top company is vulnerable as from last 40 years, the top manufacturing company is producing only a single product and does not engage in expanding the business.

Therefore, the correct option is A.

6 0
3 years ago
ynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses mac
Harrizon [31]

Answer:

$270,000

Explanation:

Calculation for the amount of Machining cost assigned to Product A

Using this formula

Machine cost=Machine hours*Activity rate

Let plug in the formula

Machine cost=1,800*$150

Machine cost =$270,000

Therefore the amount of Machining cost assigned to Product A will be $270,000

5 0
3 years ago
Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$9
11111nata11111 [884]

Answer: The farmer's economic profit is $2,75,000.

Explanation:

Cost Incurred for Growing peaches (Explicit Cost) :

Rents equipment = $90,000 a year

Paid Wages = $1,50,000

Total Explicit cost = $2,40,000

Total Revenue(TR) Earned:

TR = Number of baskets of peaches produced per year × selling price of each peaches

= 2,00,000 × $3.00

= $6,00,000

Opportunity Cost (Implicit Cost):

Interest rate on savings ( 5 %) = 5% of $1,000,000

                                                  = $50,000

Farmer earn as a shoe salesman = $35,000

Total implicit cost = $85,000

<u>Economic Profit:</u>

Economic Profit = Total Revenue - Implicit cost - Explicit cost

                            = $6,00,000 - $85000 - $2,40,000

                            = $2,75,000

3 0
2 years ago
ralph chase plans to sell a piece of property for ​$170000. he wants the money to be paid off in two ways−a ​short-term note at
Feliz [49]

Let x represent the main amount at 11% and by 8% = 170000 - x

Simple interest is equal to principle amount rate time 100

16300=x*11*1/100+

(170000-x)*8*1/100

x=90,000

170000-x= 80,000.

       Simple Interest: What Is It?

  • Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. Simple interest is determined by multiplying the daily interest rate by the principle by the number of days that elapse between payments.

To learn more about simple interest visit:brainly.com/question/18860244

#SPJ4

7 0
2 years ago
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