All categories

3 years ago

EA10.

Business

1 answer:

antoniya [11.8K]3 years ago

8 0

Answer:

The question is incomplete; the complete question is given below.

Selling Price per unit Variable cost per unit

Product $ $

Snowboards 20.00 170.00

Skis 400.00 225.00

Poles 50.00 20.00

Salvador's contribution margin is 46.2%

Explanation:

Contribution is the amount generated from the sales of a product to cover part of the total fixed cost.

Contribution is an important concept in decision making because it helps to determine the profitability of individual products where a set of products benefit from the same fixed cost. it helps in prioritizing the allocation of resources to different products based on their profitability .

Contribution per unit = Selling price per unit- variable cost per unit

Total contribution= Contribution per unit * units sold

Contribution margin ration: The proportion of sales realised as contribution is known as contribution margin ratio (CMR) . It represents the amount generated as contribution from every one dollar worth of sales. A 60% margin means that $60 is made as contribution from evry sales of $100, for example.

It is a calculated as follows:

Single-product scenario:

C.M.R= contribution per unit/ selling price per unit

Multiple-products scenario:

C.M.R= contribution from a mix / revenue from a mix

We shall use the multiple-products formula

Snowboard ski Poles Total

$ $ $

Selling price 320 400 50

variable cost (170) (225) (20)

Contribution per unit (SP-VC) 150 175 30

Cont from a mix (cont× unit) 1050 525 60

Revenue from a mix (SP× unit) 2240 1200 100

Contribution margin ratio= Cont. from a mix/ Rev from a mix

= (1050+525+60)/(2240+1200+100)

=(1635 / 3540) × 100

= 46.2 %

You might be interested in

Ann, Bob, Carl, and Dan are randomly lined up. The first two players in line then play a game; the winner of that game plays a g

Furkat [3]

Answer:

The probability of Ann winning the prize is 2.464

Explanation:

The probability of Ann winning the prize can be analysed as potray below

1.pr(of Ann being the first player selected).

Here Ann plays the 2nd,3rd and 4th player to win prize,the probability=0.8×0.8×0.8=0.512

2.Pr(of Ann being the second player selected)

If Ann is randomly selected as the second player,she will still need to play three matches to win with 1st,3rd and 4th

0.8×0.8×0.8=0.512

3.Pr(of Ann. Being the third player chooses randomly),Ann will get to play just two players i.e the winner of 1and 2 and the 4th.the probability=0.8×0.8=0.64

4.Pr(of Ann being the 4th player choosen randomly)

Ann gets to play only one match to win the prize in this scenario

So probability of a Ann win is 0.8

Total probability a Ann winning the prize=0.512+0.512+0.64+0.8=2.464

5 0

3 years ago

What percentage of the u.s. adult population has a college or post-college education (as of 2012)?

3241004551 [841]

Thirty One percent of the u.s. adult population has a college or post-college education (as of 2012).

5 0

3 years ago

When countries specialize in producing certain goods and then freely exchange those goods for other goods with different countri

GaryK [48]

Answer:

The correct answer is: Each country can consume at a point outside their production possibilities frontier.

Explanation:

A country is said to be specializing in the production of a good if it can produce the good at a lower opportunity cost. When countries produce the good they specialize in producing and trade with other countries. All the countries will be able to consume more.

The countries will produce on its production possibilities frontier at the intercept of the good they specialize in and consume at a point outside their production possibility frontier.

4 0

3 years ago

Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summ

marin [14]

Answer:

Net Sales

Gross Revenue $‭101,200

Less:

Sales Discount $288

Sales Returns $1,000 $1,288

Net Sales $‭99,912‬‬

Gross revenue = 83,200 + 18,000 = $‭101,200‬

Gross Profit

Net Sales $‭99,912‬

Less: Cost of Goods sold ($‭52,747‬)

Gross Profit $‭‭47,165‬

Cost of goods sold

= 44,797 - 600 + 8,550

= $‭52,747‬

7 0

3 years ago

A decrease in the supply of a good can be expected to cause ____ in the equilibrium price of the good and ____ in the equilibriu

JulsSmile [24]

Answer:

Increase, Decrease

Explanation:

A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.

A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer. Equilibrium quantity will, therefore, decrease.

4 0

3 years ago