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Semmy [17]
3 years ago
9

Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming yea

r, Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $30,000 and fixed selling and administrative expense is $48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio.
Business
1 answer:
rewona [7]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company plans to sell 3,500 pairs of shoes at $60 each in the coming year. The unit variable cost is $21.

1) We need to use the following formula:

variable cost ratio= Variable cost/ selling price

variable cost ratio=  21/60= 0.35

2) We need to use the following formula:

Contribution margin ratio= (selling price - unitary variable cost) / selling price

Contribution margin ratio= (60 - 21) / 60= 0.65

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Shangrilah Sandals is a manufacturing firm in a developing country, where it routinely uses grease payments to local officials t
julia-pushkina [17]

Answer:

b. cultural relativism

Explanation:

Cultural relativism refers to the ideology that what applies to current situation do not necessarily apply to another situation also.

As in the given instance the Shangrilah Sandals make grease payments in their own country as it is a developing country, but do not practice the same in another country called US as it is a developed country.

As the income of people in that country is high they do not believe in taking or accepting grease payments.

Thus, the correct option is:

b. cultural relativism

4 0
3 years ago
You decided to take a college accounting course to brush up on your knowledge of the language of business. The tuition expense w
DerKrebs [107]

Answer:

The $500 is the opportunity cost.

Explanation:

The sunk cost can be defined as a cost that has already been incurred. Such as cost can no longer be recovered. A sunk cost is considered to be irrelevant and is excluded from decision making.  

If an individual decided to take an accounting course and paid the tuition fee of $500 and gets a job offer later. If he/she decides to take up the job the tuition fee paid will be the sunk cost which cannot be recovered anymore.

8 0
3 years ago
One of the four conditions for perfect competition is few sellers and buyers. <br><br> True or False
KiRa [710]
<em>The answer you are looking for is: </em>
<u><em>True</em></u>
<em>hope that helps!!</em>
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8 0
2 years ago
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
WARRIOR [948]

Answer:

1. Dr Cash $8,290

Cr Common stock $8,290

2. Dr Supplies $980

Cr Cash $390

Cr Accounts payable $590

3. No Entry $0

No Entry $0

Explanation:

Preparation of the entries to record the transactions

1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:

Dr Cash $8,290

Cr Common stock $8,290

(Being To record the investment)

2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:

Dr Supplies $980

Cr Cash $390

Cr Accounts payable $590

($980-$390)

(Being To record the purchase of supplies)

3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.

No Entry $0

No Entry $0

4 0
3 years ago
assume bell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level,
Agata [3.3K]

In a perfectly competitive market bell computers will cause profits to increase by producing one more.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.

One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.

Learn more about perfectly competitive market here:

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6 0
1 year ago
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