Answer:
0.4 or 40%
Explanation:
The formula for Contribution Margin Ratio is:
[TS - TVC] / TS
Where TS = Total Sales
TVC = Total Variable Cost
Applying the formula,
[5,000 - 3,000] / 5,000 = 2000/5000 = 0.4
Turning this value to a percentage, 0.4 × 100 = 40%
The interpretation of this is that for every item sold, 40% of the sales price is available to cover fixed costs.
Remember: The addition of fixed cost to variable cost = total cost
Answer:
250
Explanation:
total cost= unit cost x units
there are different unit costs every day shown apart from august 29, i used the latest date of 6 dollars per unit instead.
13 x 4 + 18 x 6 + 15 x 6 = 250
Answer:
10.88%
Explanation:
The computation of the weighted average cost of capital is shown below:
But before that first we have to determine the after tax cost of debt and the total value which is shown below:
After tax cost of debt is
=7% × (1 - tax rate)
= 7% × (1 - 0.3)
= 4.9%
And,
Total value is
= $250,000 + $50,000 + $750,000
= $1,050,000
Now WACC is
WACC = Respective costs × Respective weights
= ($250,000 ÷ 1050000 × 4.9%) + ($50,000 ÷ $1,050,000 × 9)+($750,000 ÷ $1,050,000 × 13%)
= 10.88%
We simply applied the above formula
