All categories

3 years ago

The contribution margin approach helps managers in short-term decision making because it ________

2 answers:

8 0

The contribution approach is a presentation format used for calculation of the break-even point, which is the point of zero profit or loss. The contribution margin approach helps managers in short-term decision making because it reports costs and revenues at present value.

lana66690 [7]3 years ago

5 0

The contribution margin approach helps managers in short-tern decision making because it reports costs and revenues at their current value.

The contribution margin ratio/approach allows companies to determine their profits they can make from a product minus variable costs.

You might be interested in

Which of the following is an organizational factor that increases illegitimate political behavior?

Akimi4 [234]

Answer:

B) high trust zero-sum reward practice

Explanation:

Zero sum reward practices are generally not that successful since usually only a few are benefited while several people are left out of the benefits, or lose. If someone gains a benefit at the expense of others, it will always cause friction within the organization. That friction can lead to illegitimate political behavior, which is behavior that breaks implied rules. The regular "losers" in zero sum reward practices may be tempted to break the rules or cheat in order to obtain the benefits.

For example, if the same person is always selected as the employee of the month, his/her "losing" coworkers may start to sabotage his/her work.

4 0

3 years ago

Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the fo

vekshin1

Answer:

Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $12.50.

Wage Labor Demanded Labor Supplied

$12.50 375,000 625,000

This will result in a surplus of labor (625,000 higher than 375,000)

Which of the following statements are true?

Binding minimum wages cause structural unemployment. As with all price floors, a deadweight loss results, because the quantity supplied is much greater than the quantity demanded. In this case, the price of labor is the wage, and the deadweight loss = structural unemployment
In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium. Since a labor surplus exists, the price of labor should start to decrease in order to match the equilibrium price.
If the minimum wage is set at $12.50, the market will not reach equilibrium. The quantity supplied of labor is much greater than the quantity demanded for labor resulting in a surplus.

6 0

3 years ago

At 17 years old, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20

Aloiza [94]

Read the fine print, if it says “after signing, this contract is final.” Then Otto is screwed, because he must pay the $50,000

Or, Otto could hire a lawyer to fight it in court

Hope this helped ♥︎

7 0

3 years ago

A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return i

svet-max [94.6K]

Answer:

The Treynor index for the stock will be 0.02.

Explanation:

The average return of the stock is 10%.

The average risk-free rate is 7%.

The standard deviation of the stock's return is 4%.

Stock's beta is given at 1.5.

Treynor index

= (Portfolio return- risk free return)/beta of the portfolio

=(0.10-0.07)/1.5

=0.03/1.5

=0.02

So, the Treynor index for the stock will be 0.02.

4 0

3 years ago

Exercise 11-1 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On Janu

Dvinal [7]

Answer:

Straight line depreciation expense each year of the useful life would be $9,600

The double declining method

Deprecation expense in December 2021 = $20,800

Depreciation expense in 2022 = $12,480

Depreciation expense in 2023= $7488

Depreciation expense in 2024 = $4,492.80

Deprecation expense in 2025 = $2695.68

Explanation:

Straight line depreciation method = (Cost of asset - Salvage value) / useful life

Cost of asset = $52,000

Salvage value = $4,000

Useful life = 5

($52,000 - $4,000) / 5 = $9,600

The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset.

So the deprecation expense each year would be $9,600.

Double declining depreciation method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

2 × (1/5) = 0.4

Deprecation expense in December 2021 = 0.4 x $52,000 = $20,800

Net book value = $31,200

Depreciation expense in 2022 = 0.4 x $31,200 = $12,480

Net book value = $31,200 - $12,480 = $18,720

Depreciation expense in 2023 = 0.4 x $18,720 = $7488

Net book value = $18,720 - $7488 =$11,232

Depreciation expense in 2024 = 0.4 x $11,232 = $4,492.80

Net book value = $11,232 - $4,492.80 = $6,739. 20

Deprecation expense in 2025 = 0.4 × $6,739. 20 = $2695.68

I hope my answer helps you

3 0

3 years ago