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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 %

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3 years ago

A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $19,000 indicates that

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3 years ago

Like many other marketing strategy specialists, Mike relies heavily on creativity and originality. Members of his team are selec

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Brainstorming.

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The situation exposed in the question above is an example of brainstorming, which can be defined as a group dynamics technique where there is the generation of ideas for a given project.

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3 years ago

College football attendance, especially student attendance, has been on the decline. In 2016, home attendance at major colleg

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Answer:

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Can this change in opportunity cost account for the decline in college football attendance?

B) Yes, because these changes increase the opportunity cost of watching football games in person.

Even though opportunity costs do not involve actual cash payments, they are still important and individuals do consider them when they are choose one option over another. E.g. imagine if you had to choose between spending a considerable amount of money by attending a game (ticket, gas, beverages, etc.) or watching that game on TV and buying a few clothes instead or going on a date, etc. What option would you choose?

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3 years ago

Historically, demand has averaged 1447 units per week with a standard deviation of 715. The company currently has 2855 units in

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Answer:

c. 97.558%

Explanation:

Options are "A. 50.0.% B. 2.442% C. 97.558% D.197.0% E. 47,442%"

Mean = μ = 1447

Standard deviation = σ = 715

Observed value = X = 2855

Using z-score formula, Z = (X - μ) / σ

Z = (2855 - 1447) / 715

Z = 1.97

P(Z<1.97) = 0.97558

P(Z<1.97) = 97.558%

So, the probability of a stock-out is 97.558%.

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3 years ago