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NeTakaya
3 years ago
14

The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 70,400 Con

tribution margin $17,600 Total Fixed cost 6,800 Operating income $10,800 Required: 1. Calculate the contribution margin ratio.
Business
1 answer:
Zepler [3.9K]3 years ago
6 0

Answer:

Contribution margin ratio = 20%

Explanation:

We know, contribution margin is the difference between sales revenue and variable expenses, while the contribution margin ratio expressed as a parentage between the contribution margin and company sale.

We know,

contribution margin ratio = (contribution margin ÷ sales revenue) × 100

Given,

Contribution margin = $17,600

sales revenue = $88,000

Putting the value into the formula, we can get

contribution margin ratio = ($17,600 ÷ $88,000) × 100

or, contribution margin ratio = 0.2 × 100

Contribution margin ratio = 20%

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Hence, the answer was given and explained above.

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4 0
1 year ago
On November 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli's journal entry
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Answer:

                                 Dr.          Cr.

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Account Receivable            $6,000

Explanation:

Note is received against a payment of sale mad on credit. A new receivable will be built with the name of Note receivable, so this account will be debited.   To deduct the value from the account receivable we will credit the account receivable account due to its debit nature. Later on the interest will be accrued and added in this balance.

4 0
3 years ago
he theory of efficiency wages provides a possible explanation as to why Group of answer choices workers form unions. firms shoul
Katena32 [7]

Answer:

Firms may be inclined to keep their workers’ wages above the equilibrium level.

Explanation:

The efficiency wage theory states that if an employer increases the wage of his/her employees, they will be motivated and their productivity will increase. The increase in productivity should offset the increased labor costs. So the costs of higher wages should be recouped through increased productivity. Higher wages also reduce worker turnover, reducing hiring and training costs.

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3 years ago
Why is a hotel room a perishable product?
Anton [14]

E

Is the correct answer

7 0
3 years ago
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Answer:

D) Buyer

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3 0
3 years ago
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