Answer:
The correct answer is 35%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Weighted average contribution margin ratio by using following formula:
weighted-average contribution margin ratio = (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)
= ( 30 × 75% ) + ( 50 × 25%)
= 22.5% + 12.5%
= 35%
Answer:
Total Fixed Assets = 20 million
Explanation:
Total liabilities and equity = $65 million
Current liabilities = $10 million
Inventory = $15 million
Quick ratio = 3 times.
As we know
Total liabilities and equity = Total Assets
65 Million = Total Fixed Assets + Total Current Assets
65 Million = Total Fixed Assets + 45 million
Total Fixed Assets = 65 million - 45 million
Total Fixed Assets = 20 million
Quick Ratio = ( Total Current Assets - Inventory ) / Total Current Liabilities
3 = ( Total Current Assets - 15 million ) / $10 Million
3 x $10 Million = Total Current Assets - 15 million
30 million = Total Current Assets - 15 million
30 million + 15 million = Total Current Assets
Total Current Assets = 45 Million
Answer:
$1,420,000
Explanation:
Total sales of October = $1,300,000. Collected in November = (60% of 1,300,000) = $780,000
November sales = $1,600,000. 40% sales of November = $640,000
Total cash collection = $780,000 + $760,000
Total cash collection = $1,420,000
So, the cash that Pinewood will receive in November is $1,420,000.
Answer:
Comparative advantage.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation." Also, the principle of comparative advantage states that, nations (countries) can become better off than their contemporaries through the process of specializing in what they know how to produce or do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
In general, individuals and nations should specialize in producing those goods for which they have a comparative advantage.
Answer:
The correct answer are $525, $525, $570 and $675 respectively.
Explanation:
According to the scenario, the computation of the given data are as follows:
Collection period = 45 days
Days in one quarter = 90 days
So, Amount collected during the quarter = ( 90 - 45) / 90 = 1/2 of current sales + Beginning Accounts receivables
So, we can calculated the cash collection as follows:
Q1 Q2 Q3 Q4
Beginning A/c. receivables $270 $255 $270 $300
Sales $510 $540 $600 $750
Cash Collections $525 $525 $570 $675
Ending A/c Balance $255 $270 $300 $375
Note: Ending balance is the beginning balance for next quarter.
