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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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A company manufactures and sells a product for $124 per unit. The company's fixed costs are $72,760, and its variable costs are
exis [7]

Answer:

The break even point in units is 2,425.33.

Explanation:

The break even point is how many units you have to sell to pay the fixed costs. The selling price per unit is 124 and the cost per unit is 94. The contribution margin is 124-94 = 30. This means that per every unit you sell, you have $30 for paying the fixed costs. So, the total units for paying all the fixed costs are 72,760/30 = 2,425.33.

8 0
3 years ago
Help please: Free rein leaders can be described as ____
givi [52]
A style of leadership in which leaders are hands-off and allow group members to make the decisions.
8 0
2 years ago
Spectacular Corporation began the year with accounts​receivable, inventory, and prepaid expenses totaling $67,000. At the end of
bixtya [17]

Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $82,000

Adjustment made:

Add : Depreciation expense $10,000

Less  : Gain on the sale of land ($3,000)

Less: Increase in current assets -$11,000 ($78,000 - $67,000)

Less: Decrease in current liabilities -$1,000 ($43,000 - $44,000)

Total of Adjustments -$5,000

Net Cash flow from Operating activities $77,000

6 0
3 years ago
A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is
Vladimir79 [104]

<u>Full question:</u>

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a ____ product.

A. luxury

B. business

C. Specialty

D. Shopping

E. Convenience

<u>Answer:</u>

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a Specialty product.

<u>Explanation:</u>

A specialty product is a commodity that some customers will actively attempt to buy because of unprecedented features or adherence to a particular brand. Customers who endeavor specialty products know what they require and will consume time and attempt to take it.

Typically, these customers will not readily acquire replacement products. Some companies only market specialty products that promote other products in the market.  Specialty products in this range are sold to request to consumers want to individualize what they previously have.

5 0
3 years ago
Administrators
rodikova [14]

Answer:

advanced education

Explanation:

just got it right on edge 2020

4 0
2 years ago
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