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qaws [65]
2 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]2 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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The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
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Answer:

Depletion

Explanation:

The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called Depletion

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Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig
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Answer:

$400 .Since inventory is valued at cost or market value(current replacement cost) whichever is lower .

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Explanation:

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Which of the choices is an example of offshore outsourcing?
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Answer:

None of the choices describe offshore outsourcing.

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Offshore outsourcing is when a company hires a third party in another country to do some tasks for the company.

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There are two main ways to measure social inequality, they are: Inequality of conditions refers to the unequal distribution of i
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Answer:

True.

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Social inequality can be defined as an existence of unequal rewards and opportunities for different social status or classes within a group of people in a society.

Generally, social inequality is peculiar to a society that is grouped based on race, hierarchy of class, religion, culture and gender. A social inequality is characterized by unequal distribution of wealth, punishment, rewards, opportunities and goods or services to the various classes.

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3 years ago
Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas
Vikki [24]

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

FV=P(1+r)^{t}

FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290

= $6737.51

(b)  If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290

= $8061.47

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