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3 years ago

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:

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%

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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3 years ago

when banker expects a rise in interest rates in the fututre then the best strategy for the present is

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Increase duration of the bank assets

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3 years ago

A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of a

Neko [114]

Answer:

Salaries expense 5,190

Salaries payable 5,190

unearned rent revenue 90940 debit

rent revenue 90940 credit

advertizing expense 6,800 debit

prepaid advertising 6,800 credit

interest expense 3,934 debit

interest payable 3,934 credit

Explanation:

Salaries accrued

5 employes $750 each = 3750

3 employees $480 each = 1440

Total = 5190

Rent revenue

$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700

$6,060 per month x 4 lease x 1 month = 24240

total 90940

advertizing:

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9,600 / 24 months x 3 months expired = 1200

total 6,800

interest on note payable:

principal x rate x time

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3 years ago