All categories

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

You might be interested in

Which of the following is a low-interest loan to students with very high financial need? A.Direct PLUS B.Pell C.Gates D.Perkins

8090 [49]

My answer would have to be D.Perkins

7 0

3 years ago

Read 2 more answers

Background material, fact sheets, news releases, and sample photos are commonly found in what important business communication p

ad-work [718]

Answer: Background material, fact sheets, news releases, and sample photos are commonly found in a Press release

Explanation: A press release is an official statement that is sent to members of the media, to provide certain information related to an event or announcement made by the company, usually accompanied by certain material that documents the launch, such as photos and audiovisual material. These releases can save a company time to announce the events and with globalization, these releases can have a much greater reach than before.

8 0

3 years ago

alderwood estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. what is the balanc

gladu [14]

After accounting for bad debt expense, the remaining amount in the allowance for doubtful accounts is $7,950.

Bad debt, sometimes referred to as uncollectible accounts expense, is a sum of money owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for a variety of reasons, frequently due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency. Depending on accounting practices, regulatory considerations, and the institution provisioning, there are many technical definitions of what a bad debt is. Bank loans in the USA are referred to as "problem loans" if they are more than 90 days overdue. Accounting sources recommend deducting the entire amount of a bad debt from profit and loss or from a provision for bad debts as soon as it is anticipated.

To learn more about bad debt, visit:

brainly.com/question/28138659

#SPJ4

7 0

1 year ago

An adult with a developmental disability works at a local product fulfillment and distribution center. She takes the bus to get

harkovskaia [24]

Answer: Tracking and identification.

Explanation: In other ease the woes and stress of such individual, integrating a tracking and identification capability on her app will be of great help. This will ensure that she could be easily and effectively located by leveraging the ability of the geographic positioning system in other to correctly get and know are current location. With these she could be picked easily when issues of drops off at the wrong location. Trackers allows one to determine the current location of items or individuals in which the tracking devices are placed on. As it also gives signals when one gets to the current position of the item or individual for proper identification. With these locating her will become very easy and hassle free during instances of wrong drop off.

7 0

3 years ago

Galaxy lighting is a new company creating chandeliers specifically to be used in hotel lobbies. since its potential customers ar

baherus [9]

Niche marketing - It is also known as target marketing. Niche marketing is the process of finding clients who may be interested in your product. In this way, niche marketing is different from other forms of marketing in that its target group is a specific, narrower sector of the market .

3 0

3 years ago