We can find the increase in operating income for each $ 1,000 increase in revenue per month by finding the contribution margin ratio and the multiplying it with the increase operating income of $ 1,000 each.
The formula to find the contribution margin ratio is :-
Contribution margin ratio = Contribution margin per unit / Selling price per unit
= 12 / 20 = 60%
The increase in operating income = Contribution margin ratio * Revenue
= 60 % * 1,000
= $ 600
The calculations are shown below :-
Selling price per unit = $ 20
Variable cost per unit = $ 8
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $ 20 - $ 8 = $ 12
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Answer:
The company must sell:
- 13 No. 1 packages
- 6 No. 2 packages
- 17 No. 3 packages
Explanation:
the company currently has 32 motherboards, 18 CPUs, and 90 cases
Package 1 ⇒ IT MUST SELL 13 OF THESE TO SELL ALL THE MOTHERBOARDS LEFT.
2 motherboards x 13 = 25 motherboards sold
3 cases x 13 = 39 cases sold
Package 2 ⇒ IT MUST SELL 6 OF THESE TO SELL ALL ITS CPUs.
1 motherboard x 6 = 6 motherboards sold
3 CPUs x 6 = 18 CPUs sold
Package 3 ⇒ IT MUST SELL 17 OF THESE TO SELL ALL ITS CASES.
3 cases x 17 = 51 cases sold
Liabilities are a vital aspect of a company because they are used to finance operations and pay for large expansions. They can also make transactions between businesses more efficient.
