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anzhelika [568]
3 years ago
14

A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production

costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $ 8,000 Fixed operating expenses 1,000 9,000 ​ What is the amount of the contribution margin that would be reported on the variable costing income statement?
Business
1 answer:
Fantom [35]3 years ago
6 0

Answer: Contribution Margin = $20,000

Explanation:

Given that,

Sales (90 units) = $90,000

Direct materials cost = $40,000

Direct labor cost = 20,000

Variable factory overhead = 2,000

Fixed factory overhead = 7,000 and 69,000

Variable operating expenses = $8,000

Fixed operating expenses = 1,000 and 9,000

Therefore,

Contribution Margin = Sales - Variable cost of goods sold

= 90000 - (Direct materials cost + Direct labor cost + Variable factory overhead + Variable operating expenses)

= 90000 - $40,000 - 20,000 - 2,000 - 8,000

= $20,000

∴ Contribution Margin = $20,000

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The Occupational Safety and Health Administration
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Asset utilization ratios
Igoryamba

Answer:

a. relate balance sheet assets to income statement sales.

Explanation:

Asset utilization ratio measures the ability of a firm to generate revenue from each dollar of assets that it holds. It is computed using the following formula:

Asset Utilization = Revenue / Average Total Assets

Revenue is an income statement account, while average total assets is a balance sheet account, thus, the answer is a.

8 0
3 years ago
as foreign exchange activity has grown, a given degree of central bank intervention has become: a. more frequent. b. less effect
Lunna [17]

As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.

Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.

If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.

You can learn more about  role of central bank at

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6 0
10 months ago
Match each concept in Column A with an example in Column B. Column A Column B a. Substitute goods 1. Price and quantity along th
Anna007 [38]

Answer:

a. Substitute goods - Tea and coffee

b. A nonprice determinant of demand - Consumer income

C. A nonprice determinant of supply -  A change in technology

D. Mark-up pricing - Setting price equal to cost plus 20 percent

E. Positive relationship -  Price and quantity along the supply curve

F. Negative relationship -  Price and quantity along the demand curve

G. Inadequacy - Hunger

H Complementary goods - Shoes and shoelaces

Explanation:

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

Complementary goods are goods that are consumed together

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

There is a positive relationship between price and the quantity supplied. This accounts for why the supply curve is positively sloped.

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :  

1. A change in the price of input  

2. A change in the number of suppliers  

3. Government regulations  

4. Technological changes

7 0
3 years ago
You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial paym
vovikov84 [41]

Answer:

PV= $450,909.1

Explanation:

Giving the following information:

Cash flow (Cf)= $24,800

Growth rate (g)= 3.5%

Discount rate (i)= 9%

<u />

<u>To calculate the present value, we need to use the following formula:</u>

PV= Cf / (i - g)

PV= 24,800 / (0.09 - 0.035)

PV= 24,800 / 0.055

PV= $450,909.1

6 0
3 years ago
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