Answer:
a. $9,338
b. 0.363
Explanation:
a. Contribution Margin = Sales - Variable Cost
Where Sales = $25,700
Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses
V.C. = 8,982 + 6,500 + 40% * 3,700
V.C = 8,982 + 6,500 + 1,480
= $16,362
Therefore, Contribution Margin = Sales - Variable Cost
= $25,700 - $16,362
=$9,338
b. McDonald's contribution margin ratio = Contribution Margin / Sales
= $9,338 / $25,700
= 0.363
Answer:
C
Explanation:
Because they need to know they will be successful in the new market.
Answer:
a. Some of your printing processes utilize chemicals that require press operators to wear masks during production.<u> </u><u>Health and safety risks.</u>
Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.
b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. <u>Increase employment.</u>
<u></u>
c. The business is a member of the local Chamber of Commerce and supports local community charities. <u>Improve the quality of life</u>
The business supports local charities which shows that it aims to improve the quality of life.
<u></u>
d. The business is the only one in town to offer 48-hour turnaround on printing projects. <u>Offer valuable products</u>
The business is the only one offering this service so it is offering valuable services.
<u></u>
e. The business uses ink that is shipped in bulky, non-recyclable ink containers. <u>Environment damage</u>
Ink is bulky and containers are non-recyclable. This will cause environmental damage.
Answer:
0.98%
Explanation:
Note: Options provided is slightly different for this question
EAR = (1+APR/m)^m - 1
EAR = (1+0.069/12)^12 - 1
EAR = (1.00575)^12 - 1
EAR = 1.07122449517 - 1
EAR = 7.12%
Hence, higher EAR charged by Woodburn versus the rate charged by Southwestern = (8.1% - 7.12%) = 0.98%
