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dem82 [27]
2 years ago
6

Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.42 per pers

on. To differentiate his gym and better serve his clients, Anthony provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.94 per person. Anthony employs three part-time instructors and pays them each $1,182 per month. He also pays himself a monthly salary of $4,100. Anthony’s other monthly costs are $1,570 for rent, $1,420 for depreciation on his 30 bikes, and $1,958 in utilities and insurance.
(a) What is Anthony’s contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.)
(b) What is Anthony's contribution margin ratio?
Business
1 answer:
Alik [6]2 years ago
8 0

Answer:

(a) $3.48 per unit

(b) 64.2%

Explanation:

(a) Anthony’s contribution margin per unit:

= Selling price per unit - Variable cost per unit

= $5.42 - $1.94

= $3.48 per unit

Therefore, the Anthony’s contribution margin per unit is $3.48 per unit.

(b) Anthony's contribution margin ratio:

= (Contribution Margin Per unit ÷ Selling Price per unit) × 100

= ($3.48 per unit ÷ $5.42 per unit) × 100

= 0.6420 × 100

= 64.20%

Therefore, the Anthony's contribution margin ratio is 64.2%.

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Ksju [112]

Answer:

i =0.050713..     or

approximately \ 5.0713..\%

Explanation:

Assume an investment of $1.00

First Simple Bank:

Amount after 6 years = 1 + PRT

= 1 + 1(0.064)(10)  

= 1.64

 

Complex Bank:

1*(1+i)^{10}  = 1.64

Take 10th root of both sides

( (1+i)^ {10})*(\frac{1}{10} ) = 1.64^{\frac{1}{10}}

1+i = 1.050713..

i =0.050713..

or

approximately \ 5.0713..\%

8 0
2 years ago
There are _____ individual food establishments in the United States.
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it should be a because the answer for 2018 247,191

8 0
3 years ago
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Which of the following includes ideas, innovation, and risk-taking?. . Capital. . Entrepreneurship. . Labor. . Land
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Entrepreneurship

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6 0
3 years ago
A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaur
wel

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Psychological pricing

Explanation:

Psychological pricing also known as price ending, charm pricing is a pricing and marketing strategy based on the theory that prices produces a psychological impact. This involves setting prices as odd prices being a little less than a whole number such as $9.99 or £2.99. It is believed that consumers think that this prices are lower than they actually are.

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3 years ago
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A firm in a perfectly competitive market has a fixed cost of $1,000 and a variable cost of $500 while it is earning the revenue
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Answer:

Firm should not shut down, as it is able to cover its Average Variable Cost

Explanation:

Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.

Given : Variable Cost (VC) = 500 ; Revenue (R) = 510

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8 0
3 years ago
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