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ycow [4]
3 years ago
12

Cash dividends reduce the stockholders' equity in the corporation. a. True b. False

Business
1 answer:
patriot [66]3 years ago
3 0
To answer the question above if cash dividends reduces the stockholders' equity in the corporation is letter A, TRUE, The stockholders' equity will decrease due to corporation's asset and retained earnings<span> decreases because of the dividend. On the other the income statement wont be affected by the declaration.</span>
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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following
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Answer:

1.  73 %

2. 27 %

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4. Ways to increase projected operating income without increasing total sales revenue :

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

                     = $88,000 - $23,760

                     = $64,240

Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

                                           = 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

                                = $23,760 / $88,000 × 100

                                = 27 %

Break-even sales revenue = Fixed Costs ÷  Contribution Margin Ratio

                                            = $43,800 ÷ 0.73

                                            = $60,000

<u>Ways to increase projected operating income without increasing total sales revenue :</u>

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads
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