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qaws [65]
3 years ago
14

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The

company’s fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit?
Business
1 answer:
allochka39001 [22]3 years ago
6 0

Answer:

Variable Cost  -$448,000  

Explanation:

The contribution margin formula it's : Net Sales - Variable Costs: Contribution Margin

The contribution margin indicates how much money the company has to cover its expenses not included in the cost of the goods or the variable costs, it is the remaining amount that is used to pay the administrative and sales expenses.

In this case:

Sales : 16.000 x $40 (price) = $640,000

Contribution Margin 30% which means 30%*$640,000 = $192,000

The difference it's the Variable Costs = -$448.000  

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On January 1, 2016, Ott Company sold goods to Fox Company. Fox signed a noninterest-bearing note requiring payment of $60,000 an
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Answer:

D. 321,600.

Explanation:

Present value is the current value of a future amount that is to be received or paid out.

Given:

Present value, P = $60000

Present value of ordinary annuity for the remaining 6 years = 4.36

The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments

Sales revenue = $60000 + (60,000 × 4.36)

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= $321,600

Thus, sales revenue of $321,600.

3 0
3 years ago
Brand equity is the: Question 3 options:
natali 33 [55]

Answer:

d) association a consumer places in a brand with an organization.

Explanation:

Brand equity referes to the commercial value of a brand that a costomer perceives from the brand name. it is the value associated with the brand and not its product or services.

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3 years ago
Which of these goals is specific?
stellarik [79]
The first one is specific because it tells what kind of traveling they want to check that their friends have done
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3 years ago
The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are become i
viktelen [127]

Answer:

The answer is TRUE.

According to the law of increasing costs, the cost of producing kiwis will increase.

Explanation:

The law of increasing costs states that as more factors of production are shifted from making one product or service to a second product or service, the cost of producing the second item increases.

As we can see in the scenario given above, the community of Desertville initially produced a small amount of Kiwi fruit. But as kiwis became more popular, its cultivation had to be expanded, therefore, increased costs would be incurred in the process of this expansion.

8 0
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dem82 [27]

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Explanation:

Net export is the measure of a country's total trade. Net exports can be calculated by subtracting the value of all goods and services a county imports from the value of the total goods and services the country exports.

When exports reduce and imports increase, then the net exports (exports ‐ imports) will reduce. Since the U.S. company buys a new industrial sewing machine from a company that is located in France, this means that the U.S net export will decrease.

The sewing machine can be used for the production of cloth. This will lead.to an increase in investment.

8 0
3 years ago
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