Answer:
A) $38,650; 48.31%
Explanation:
The computation of the contribution margin and the contribution margin ratio is shown below:
Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense
= $80,000 - $22,000 - $19,350
= $38,650
The variable cost is Cleaning Supplies Used + wages expense
And, the contribution margin ratio equals to
= (Contribution margin ÷ sales) × 100
= ($38,650 ÷ $80,000) × 100
= 48.31%
Answer: (A) Market maturity
Explanation:
The market maturity is one of the stage in the product life cycle where is basically refers to the sales growth where the product sales growth get increased and then suddenly get slows down.
The market maturity stage is basically known as the longest stage in the product life cycle. In this life cycle stage the organization reaches to the highest level during the demand cycle.
Therefore, Option (A) is correct.
Answer: Increased profit as opposed to making them internally.
Explanation:
Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.
Buy decision
Unit price= $34
Total unites= 19900
Total cost= $34*19900=$676,600
Make decision
$
Direct materials 178,000
Direct Labor. 380,000
Variable overhead. 104,000
Relevant fixed overhead 260,000
Total $922,000
Unit price for make=922000/19900
Unit price=$46.33
Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).
Answer:
a. Product, price, distribution, and promotion variables
Explanation:
As a customer requires various attributes of the product, that is for which the customer will not compromise in, these include:
The product needed, as for the customer is hungry he shall ask for a pizza, now pizza is a product.
The price of the product, if the price is in the budget of the customer he shall buy it else he shall not buy it.
Distribution associated with it basically the method in which it will be distributed, the packaging extracts.
Promotion variables includes extra benefits like offered with the product, cash backs as for example, etc:
The cost of equity from retained earnings based on the DCF approach=9.44%
Explanation:
- The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
- Therefore, rs =
+ g
