Software documents very important information
Answer:
Definition:
Contribution margin ratio is defined as, the difference between revenue and variable costs of the entity, expressed as percentage of sales.
Explanation:
Basically, the contribution margin ratio indicates that how much of sales amount is available to the entity to cover the fixed expenses incurred by the entity. It can be calculated using the following formula.
Formula= Contribution of the entity/ Sales Revenue of the entity.
If the contribution margin ratio of any entity is for example 50%, it will indicate that 50% of the sales amount is available to the entity tocover the fixed expenses which are to be incurred by it.
Answer:
$5.52 million
Explanation:
Data provided in the questions
Lose sales per year = $23 million
After tax operating margin on sales is 24%
By considering the above information, the yearly side effect for introducing the new product is
= Lose sales per year × After tax operating margin on sales
= $23 million × 24%
= $5.52 million
We simply multiplied the lose sale per year with the after tax operating margin on sales so that the yearly side effect could come
Answer:
The statement is: True.
Explanation:
Every time a company decides to open up businesses abroad, the must make a study in which the possibilities of success in the new region are highlighted. <em>Consumer behavior </em>and <em>buying patterns</em> are two of the main factors they have to consider as well as the <em>performance of the overall economy</em> of the country in the past years.