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dsp73
3 years ago
15

Given a normal selling price per unit of $750, what is the contribution margin per unit sold for recurring (i.e., normal) sales

Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

$396

Explanation:

Calculation for the contribution margin per unit sold for recurring sales

Using this formula

Contribution margin per unit = Normal Selling price per unit - (Direct material +Direct labor+Variable factory overhead)-Variable selling & administrative costs

Let plug in the formula

Contribution margin per unit = $750 - ($120+ $150 + $60) - $24

Contribution margin per unit = $750 - $330 - $24

Contribution margin per unit= $396

Therefore the contribution margin per unit sold for recurring sales will be $396

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Management at Gordon Electronics is considering adopting a bonus system to increase production. One suggestion is to pay a bonus
tekilochka [14]

Answer:

  • <u><em>4,099 units or more</em></u>

Explanation:

The cumulative distribution of a random variable X that follows a normal distribution is given by the area undear the "bell curve" and the values are given by the corresponding table for the standard normal distribution.

The standardized value of the variable X is called Z and is calculated with the formula:

          Z=\dfrac{X-\mu}{\sigma}

Where:

         \mu=mean=4,000

         \sigma=standard\text{ }deviation=60

You read the Z-value for which the probability is greater than or equal to 5% in the table for the values of the area to the right of Z. Using probability = area under the curve ≥ 5%, the Z-value is 1.645 (interpolating between p = 0.0495, Z = 1.64 and p = 0.0505, Z = 1.65).

Substituting in the formula for Z:

  • 1.645 = (X - 4,000) / 60

  • X= 60 × 1.645 + 4,000 = 4,098.7 ≈ 4,099

Hence, the bonus will be paid on 4,099 units or more.

3 0
3 years ago
For the most recent year, Triad Company had fixed costs of $190,000 and variable costs of 75% of total sales revenue, earned $58
poizon [28]

Answer:

The computations are as follows

Explanation:

a)  Before tax income  is

 = After Tax Income ÷ (1 - Tax Rate)

= $58,500 ÷ (1 - 0.35)

= $90,000

b) Total Contribution Margin

Contribution Margin = Fixed Costs + Before Tax Income

= $190,000 + $90,000

= $280,000

c) Calculation of Total Sales

Variable Cost is 75% of Sales

SO, Contribution Margin 25% of Sales

Contribution Margin = $280,000

25% of Sales = $280,000

Sales = $280,000 ÷ 25%

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d) Break Even Point in dollars

Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage

= $190,000 ÷ 25%  

= $760,000

We simply applied the above formula

8 0
3 years ago
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3 years ago
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Blizzard [7]

Answer:

a. True

Explanation:

Answer this question using YTM, coupon rate, price and par value relationship/rules.

If YTM > coupon rate, then Price < Par value

If YTM < coupon rate, then Price > Par value

If YTM = coupon rate, then Price = Par value

In this case, the assumption is that YTM > coupon rate, hence based on the above rules, the Price or market value of the bond will be < Par value. This makes the statement true.

6 0
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kykrilka [37]

Answer:

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Explanation:

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