Answer:
The correct answer is 45%.
Explanation:
According to the scenario, the given data are as follows:
Selling price = $640
Variable cost = $352
Annual fixed cost = $985,500
Current sales volume = $4,390,000
So, we can calculate the contribution margin ratio by using following formula:
Contribution margin ratio = (Contribution margin per unit ÷ selling price per unit ) × 100
Where, Contribution Margin = Selling price - Variable cost
= $640 - $352 = $288
So, by putting the value in the formula, we get
Contribution margin ratio = ( $288 ÷ $640 ) × 100
= 0.45 × 100
= 45%
Answer:
C
Explanation:
The dividend payout ratio is the ratio of dividends paid to shareholders in proportion to net income
Payout ratio = dividends / net income
If dividend payout ratio of one half, it means that only half of net income is paid as dividends
Answer:
Applied Overhead is higher than actual overhead. Hence, manufacturing overhead is $ 4,000
Explanation:
Given data:
estimated overhead = $2,40,000
Labor cost =$2,80,000
Direct labor cost = $3,00,000
= $ 0.80 per direct labor cost
=$ 2,24,000
Actual Overhead cost = $ 2,20,000
Applied Overhead is more than actual overhead. Hence, manufacturing overhead is $ 4,000.
Answer:
C. By realizing gains through increase in share price and cash divideneds.
Explanation:
For most corporations, the management must strive to ensure the firm is doing well in the market space. Once a company is doing well, it will affect its share price positively on the stock exchange.
An increase in the share price of fim is a gain to the firm and its corporate owners. I.e sharedholders. This means that the value of their investment in the firm has appreciated.
Furthermore, the firm must try to make profit which is one of the reason of being in business. A firm that is making profit will be able to declare same at the end of the financial period, hence corporate holders(shareholders) would be have part in profit declaration through dividened.
Answer:
The demand that Le Jouet faces for toy trains in France is less elastic than in Russia.
Explanation:
This is the statement that best describes the panorama that Le Jouet faces in France. When comparing the markets of France and Russia, we learn that the demand for toy trains in France is less elastic than the demand in Russia. Price elasticity refers to a measure of responsiveness of consumers. This measures how responsive consumers are to a price change.
