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storchak [24]
3 years ago
9

Which of the following equations is true? Select one: a. Contribution margin = Sales revenue × Variable cost ratio b. Contributi

on margin = Fixed costs c. Contribution margin ratio = 1 − Variable cost ratio d. Contribution margin ratio = Contribution margin / Variable costs
Business
1 answer:
m_a_m_a [10]3 years ago
5 0

Answer: c. Contribution margin ratio = 1 − Variable cost ratio

Explanation:

The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.

The formula is,

Contribution Margin Ratio = Sales - Variable Costs / Sales

Breaking the formula down further we have,

Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales

Contribution Margin Ratio = 1 - Variable Costs / Sales

Variable Cost/Sales is the Variable Cost Ratio.

So Option C is correct.

You might be interested in
Billie transferred her 20 percent interest to Jean Company as part of a complete liquidation of the company. In the exchange, sh
7nadin3 [17]

Answer:

A) $200,000 loss recognized by Jean and a basis in the land of $200,000 to Billie

Explanation:

The computation is shown below:

For loss recognized, the amount would be

= Land basis - fair value of land

= $400,000 - $200,000

= $200,000

And, the basis in the land should be equal to the fair value of the land i.e $200,000

Hence, the correct option is A

By dividing the fair value from the land basis we can get the loss recognized

3 0
3 years ago
Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience
GrogVix [38]

Answer:

a. $169,800

Explanation:

As for the provided information we have,

Sales data, for each month

July              $120,000

August         $211,000

September   $198,000

Cash receipt budgeted for September shall be:

36% of sale of the month of July = $120,000 \times 36% = $43,200

60% of sale of the month of August = $211,000 \times 60% = $126,600

Thus, total expected amount = $169,800

Therefore, correct option is

a. $169,800

4 0
3 years ago
A major advantage of job specialization in business is increased _________. motivation opportunity for advancement opportunity f
Whitepunk [10]

Answer:

Productivity.

Explanation:

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

3 0
3 years ago
How does a market system prevent people from getting as many goods and services as they wish?
Dvinal [7]
Prices prevent this. Lots of people can't afford to get as much as they wish, rather as much as they can buy. That's why a market system and stores don't sell out so easily, because people don't buy as much as they really wish for, but how much they need. 
Hope this helps!
7 0
3 years ago
Which of the following is not common to all investments?
MrRa [10]

Answer:

Option D is the correct answer

Explanation:

Investors are typically expected to part with their funds today in expectation for a future amount,hence the funds so invested are invested for speculative reasons.

Owners are given the option of future payments at redemption of the investments while some investments can be divested before maturity.

Future payments are naturally risky because investment is like two sides of a coin, it either has a positive or negative outcome such loss of the entire invested sum.

Not all investments pay positive rate of interest, the US bank deposit interest was negative during the global meltdown in 2009.

5 0
3 years ago
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