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rodikova [14]
3 years ago
13

The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125

,000Marketing24,00024,000Administrative20,00020,000Variable costs: Manufacturing $ 110,000$110,000 Marketing 30,00030,000 Administrative 34,00034,000 During the year, the company produced and sold 60,00060,000 units of product at a selling price of $ 12.40$12.40 per unit. There was no beginning inventory of the product at the beginning of the year.What is the contribution margin ratio for Blaine Corporation (round to 1 decimal)?A. 70.470.4 %B. 53.953.9 %C. 22.722.7 %D. 76.676.6 %
Business
1 answer:
natima [27]3 years ago
5 0

Answer:

D. 76.6 %

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

<em>First Calculate the Contribution</em>

Contribution = Sales - Variable Costs

                     = (60,000 units × $ 12.40) -  ($110,000+$30,000+$34,000)

                     = $744,000 - $174,000

                     = $570,000

<em>Then Calculate Contribution Margin Ratio</em>

Contribution Margin Ratio = $570,000 / $744,000 × 100

                                           = 76.61290

                                           = 76.6 % ( 1 decimal)

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Data concerning Bedwell Enterprises Corporation's single product appear below:
melisa1 [442]

Answer:

unit sales = $3482.49

Explanation:

given data

Selling price per unit  = $240.00

Variable expenses per unit = $99.50

Fixed expense per month = $454,290

monthly target profit =  $35,000

solution

we get here contribution margin that is express as

contribution margin = Sales - Variable cost    ..................1

put here value

contribution margin = $240 - $99.50

contribution margin =  $140.50

so here Target Contribution margin will be

Target Contribution margin = Fixed cost + Target profits    ...............2

put here value

Target Contribution margin = $454,290 + $35,000

Target Contribution margin = $489290

so here unit sales will be as

unit sales = \frac{489290}{140.5}

unit sales = $3482.49

8 0
3 years ago
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi
Wittaler [7]

Answer:

Option (a) is correct answer (14 Months)

Explanation:

Given data

Investing in TQM = $2,000,000

Minimum rise in demand = 3.0 %

Last year’s sales = $163,508,343

As per the given data next year sales is increased by 3.0%. So, 3.0% of last year sales

=> 0.03 × $163,508,343 = $4,905,250.29 ~= $4,905,250

Income added to the bottom line = 34.1% of increased demand

=> 0.341 × $4,905,250 = $1,672,690.25~= $1,672,690

Payback on the initial $2,000,000 TQM investment can be attained in a period and can be computed by using the formula

=> (Investment in TQM / Revenue added to the bottom line) × 12

=> ($2,000,000 / $1,672,690) ×12 = 14.34 ~ = 14 Months

7 0
3 years ago
The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly furt
WINSTONCH [101]

Answer and Explanation:

The preparation of the analysis shows whether the assemblies should process further or not is presented below:

Differential revenue  (38,000 units × ($51 - $44)) $266,000

Differential costs:  

Direct material (38,000units × $2 per unit) ($76,000)

Direct labor (38,000units × $2 per unit) ($76,000)

Variable overhead (38,000units × $1 per unit) ($38,000)

Fixed costs ($160,000  - $225,000) ($65,000)

Additional income (loss) from processing further $11,000

Since the amount comes in positive so it should be processed further

7 0
2 years ago
A 20-year-old student wants to save $5 a day for her retirement. Every day she places $5 in a drawer. At the end of each year, s
ollegr [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. She will invest for 45 years.

A) We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1825[(1.08^45)-1]}/0.08= $705,372.75

B) n= 25

FV= {1825[(1.08^25)-1]}/0.08= $133,418.34

C) FV= 705,372.75     A=?

We need to isolate A:

A= (FV*i)/{[(1+i)^n]-1}

A=(705,372.75*0.08)/[(1.08^25)-1]

A= $9,648.64

7 0
3 years ago
A bank agrees to lend via simple loan $100 today to Thomas. The agreement is based on that the yearly interest rate is 15%. If T
Ede4ka [16]

Answer:

$404,55 (cumulative) or $250 (american)

Explanation:

This explanation considers a cumulative interest rate in the simplest way. And american amortization system. Consider that there is also French and German systems which works differently depending on the way the loan reimbursed

Cummulative Interest Rate:

Consider this:

If Thomas had to return it in one year he would have to return $115 ($100+15%) which is equal to 100*(1+0.15)

Now, at the begining of the second year, his debt is $115, and at the end its $115+15% = 132,25.  Which is equal 100*(1+0.15)*(1+0.15), this is equivalent to 100*(1+0.15)^{2}

The general formula for cummulative interest is C(1+i)^{n}

Where

C = is the loan amount [in this case: 100]

i = is the interest rate [in this case: 0.15]

n = is the number of periods until [in this case: 10]

American System

The american system is quite straight forward:

Thomas should pay $15 every year for 10 years, and with the last payment he should pay $115.

This is because in this system Thomas returns the capital (the amount of the loan) at the end; and each year he only pays the interest .

$15*10 + $100 = $250

7 0
3 years ago
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