Which education level has the highest return on investment (ROI)

Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem

Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

Alternative 1

Sales Price per unit after increasing 20%,

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

Alternative 2

Commission = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

7 0

3 years ago

The u.s. dollar exchange rate increased from $0.960.96 canadian in june 2011june 2011 to $1.031.03 canadian in june 2012june 2

Artemon [7]

Given that the U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it decreased from 81 Japanese Yen in June 2011 to 78 Japanese Yen in June 2012.

Between June 2011 and June 2012, the U.S. dollar appreciated against the Canadian dollar.

Between June 2011 and June 2012, the U.S. dollar depreciated against the Japanese Yen.

8 0

3 years ago

What is a competency based interview?

yKpoI14uk [10]

it's an interveiw targetting a speciffic skill or Competncy

3 0

3 years ago

Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $45

ahrayia [7]

Divide variable costs by output. Therefore, it would be 750000 divided 1200, giving you $625.

6 0

3 years ago

Read 2 more answers

"I'll let you sell the Harley-Davidson designer clothes only if you'll also sell a new line of clothes designed by Paula Abdul,

yulyashka [42]

Answer:

B)tie-in sales.

Explanation:

Theses are the options for the question;

A. misrepresentation.

B. tie-in sales.

C. reciprocity.

D. price discrimination.

E. kickbacks

From the question, we are informed about a statement ""I'll let you sell the Harley-Davidson designer clothes only if you'll also sell a new line of clothes designed by Paula Abdul, too."

This statement made by a salesperson to a specialty retailer is potentially an example of tie- sales and may be in violation of the Clayton Act prohibition if the action substantially lessens competition.

It should be noted that tie - in sales in finance means that when a cusumer buys a goods he/she must buy the other product, it simply means the products are tied, and this is opposite of Clayton Act which was set up to bring end to transactions that can lead to monopolies.

3 0

3 years ago