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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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On March 15, 2015, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from R. Roy

ira [324]

Answer:

The Journal entry with their narrations is shown below:-

Explanation:

The Journal entry is shown below:-

Cash Dr, $1,200

Notes Receivable Dr, $2,800

To Accounts Receivable -R. Roy $4,000

(Being office supply of Vikram is recorded)

Therefore for recording the office supply we simply debited cash and notes receivable and credited the accounts receivable

5 0

3 years ago

government regulation is the most important factor. B) commodity money, because it is valued more highly, tends to drive out pap

Alex73 [517]

Answer:

The question is not complete.

Here is the complete question:

In explaining the evolution of money, the text claims that

A) government regulation is the most important factor.

B) commodity money, because it is valued more highly, tends to drive out paper money.

C) new forms of money evolve to lower transaction costs.

D) all of the above are true.

Here is the answer:

C.new forms of money evolve to lower transaction costs.

Explanation:

Before the advert of money, transactions between individuals were based on exchange goods for goods, a system called trade by barter. The system of trade by barter permits individual who has a particular good but desire another to exchange the goods he has with another person who has the goods he desires.

However, this system has a major flaw: transaction costs were higher.

The system of trade by barter only works if the two people involved has complimentary possession of goods that the other wants and be able to locate each other. With this high transaction costs, exchange of goods was difficult to carry out.

On this background, money evolve to lower this transaction costs and make exchange of goods possible without the need to have what another person wants and the trouble of finding where they are.

4 0

3 years ago

Read 2 more answers

Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput

lesya [120]

Answer:

Option (a) is correct.

Explanation:

France can produce four phones or three computers:

Opportunity cost of producing one phone = (3 ÷ 4)

= 0.75 computers

Opportunity cost of producing one computer = (4 ÷ 3)

= 1.33 phones

Sweden can produce one phone or two computers:

Opportunity cost of producing one phone = (2 ÷ 1)

= 2 computers

Opportunity cost of producing one computer = (1 ÷ 2)

= 0.5 phones

Therefore,

France has a comparative advantage in producing phones because of the lower opportunity cost of producing it than Sweden. France should specialize in producing phones and import computers from Sweden.

Sweden has a comparative advantage in producing computers because of the lower opportunity cost of producing it than France. Sweden should specialize in producing computers and import phones from France.

5 0

3 years ago

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1 par, common shares, to b

uranmaximum [27]

Answer and Explanation:

The journal entry is given below:

Stock dividends Dr $60.00

To Common stock $60.00

(Being the issue of stock dividend is recorded)

Here the stock dividend is debited as it reduced the stockholder equity and credited the common stock as it increased the stockholder equity

Also the par per share after the split is $1

8 0

2 years ago

Transformational leadership is a positive predictor of job performance and organizational commitment.

Taya2010 [7]

Answer:

a. True

Explanation:

Transformational leadership can be understood as a leadership style whose main objective is the motivation of employees. The transformational leader is the one who seeks to inspire employees through their own example and willingness to work, is the leader who assertively communicates with his team, seeking the autonomy of employees, building a relationship based on trust and increasing of creativity and organizational innovation.

This leadership style is a positive indicator of organizational performance and commitment because it is based on strengthening the organizational culture, where each employee has the possibility to contribute with innovative ideas in favor of the organization's objectives and goals, which creates a sense of greater appreciation and job satisfaction, greater motivation that increases the employee's creativity and productivity.

4 0

2 years ago