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timama [110]
3 years ago
12

A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300

associated with its production. The company has fixed expenses of $30,000 per month. In May, the company sold 300 of the X-1 model bikes. Show your calculations for full credit. Calculate the contribution margin per unit for the Bomber. Calculate the contribution margin ratio of the Bomber. Prepare a contribution margin income statement for the month of May.
Business
1 answer:
tankabanditka [31]3 years ago
6 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $500

Unitary variable cost= $300

Fixed costs= $30,000

Units sold= 300

<u>First, we need to calculate the contribution margin:</u>

Contribution margin= 500 - 300= $200

<u>Now, the contribution margin ratio:</u>

Contribution margin ratio= contribution margin/selling price

Contribution margin ratio= 200/500= 0.4

<u>Finally, the contribution margin income statement:</u>

Sales= 500*300= 150,000

Total variable cost= 300*300= (90,000)

Contribution margin= 60,000

Fixed costs= (30,000)

Net operating income= 30,000

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3 years ago
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Suppose that TapDance, Inc.’s, capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of de
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Answer:

WACC 8.53600%

Explanation:

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3 years ago
A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidia
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Answer:

10% foreign exchange loss on the U.S. dollar accounts receivable

Explanation:

Based on the information provided within the question it can be said that in this example the Canadian subsidiary will record​ a 10% foreign exchange loss on the U.S. dollar accounts receivable. That is because as the Canadian dollar has appreciated​ 10% against the U.S. dollar, it means that it has lost 10% of it's buying power due to its foreign exchange price change, thus resulting in a loss which needs to be recorded.

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Dublin Inc. had the following common stock record during the current calendar year: Outstanding-beginning of year 2,600,000 Addi
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We can calculate the number of shares by using following formula:

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= [2,600,000 + (280,000 × 6/12) + (280,000 × 3/12)] × 1.13

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Based on the above scenario, Since it is in its growth phase, I believe that the manufacturer should agree to make this changes.

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Note that since it is in its growth phase, the product is widely accepted and there are lot of holiday sales.

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