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vodomira [7]
3 years ago
9

Suppose that a company expects the following financial results from a project during its first year operation:

Business
1 answer:
stiks02 [169]3 years ago
5 0

Answer:

a. Contribution margin in percentage is 66.67%

b. Break even point in units is 2500 units

Explanation:

a.

Contribution margin is the value that each product is contributing towards covering the fixed costs of the business. The contribution margin is calculated by deducting Variable cost from the total revenue. The contribution margin ratio is the contribution margin expressed as a percentage of revenue.

Contribution margin percentage =  (Contribution margin / Sales) * 100

Contribution margin = Revenue - Variable costs

So Contribution margin ratio = [ (300000 - 100000) / 300000] * 100 = 66.67%

b.

The break even point in units the quantity of units needed to be sold in order for the firm to break even. Break even is the point where Total revenue equals total costs.

Break even in units = Fixed cost / Contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = (300000 / 10000)  -  (100000 / 10000) = 20

Break even point in units = 50000 / 20 = 2500 units

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The amount of cost of goods sold using FIFO method is $110,000.

Hope this helps. :)

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3 years ago
John is an investor who is looking at two opportunities. One has higher risk than the other. John is willing to invest in the hi
harina [27]

Answer:

B. As a risk-averse investor

Explanation:

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3 years ago
A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do
maxonik [38]

Answer:

FALSE

Explanation:

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3 years ago
What is polycentricity?
bulgar [2K]

Answer:

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: having more than one center (as of development or control): such as. a : having several centromeres polycentric chromosomes.

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7 0
2 years ago
Tara wants to put a small portion of every paycheck into a low-risk investment. which would be her best option?
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Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

<h3>What is a paycheck?</h3>

A paycheck can be defined as a financial document that is issued by an employer to an employee as payment for the work done over a period of time.

<h3>What is risk tolerance?</h3>

In Insurance, risk tolerance can be defined as the willingness of an individual or organization to take a risk in business transactions and investments, in order to get a potentially positive reward.

Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.

In this scenario, we can reasonably infer that Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

Read more on low-risk investments here: brainly.com/question/26164819

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6 0
1 year ago
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