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stepladder [879]
3 years ago
13

Hudson Co. reports the contribution margin income statement for 2019.

Business
1 answer:
Studentka2010 [4]3 years ago
8 0

Answer:

1. Contribution Margin = $576,000

2. Contribution Margin ratio = 25%

3. Break-even point = 5,400 units

4. Break-even point in sales dollars = $1,296,000

Explanation:

Requirement 1

If Hudson Company raises its selling price to $240 per unit, the contribution margin format income statements will be as follows:

                             HUDSON CO.

      Contribution Margin Income Statement

          For Year Ended December 31, 2019

Sales Revenue ($240 × 9,600 units)    =  $2,304,000

<em>less</em>: variable expense                         <u>  =  $(1,728,000)</u>

($180 × 9,600 units)

Contribution Margin                              =     $576,000

It increases due to the rise in sales price.

Requirement 2

We know,

Contribution Margin ratio = (contribution margin ÷ sales revenue) x 100

Given,

From requirement 1, we get, Contribution Margin = $576,000

And total sales revenue = $2,304,000

Putting the value into the above formula, we can get-

Contribution Margin ratio = ($576,000 ÷ $2,304,000) × 100

or, Contribution Margin ratio = 0.25 × 100

Therefore, Contribution Margin ratio = 25%

Requirement 3

We know,

Break-even point (in Units) = Fixed costs ÷ contribution margin per unit.

Given,

Fixed costs = $324,000

contribution margin per unit = sales price per unit - variable cost per unit

contribution margin per unit = $240 - $180

contribution margin per unit = $60

Putting the value into the above formula, we can get-

Break-even point (in Units) = $324,000 ÷ $60

Break-even point (in Units) = 5,400 units

It means, if Hudson company sells 5,400 units, there will be no loss or no profit.

Requirement 4

We know,

Break-even point in sales dollars = Break-even point sales in units × sales price per unit

Given,

From requirement 3, we get the break-even point sales in units = 5,400 units

Sales price per unit = $240

Putting the value into the above formula, we can get-

Break-even point in sales dollars = 5,400 units × $240

Therefore, Break-even point in sales dollars = $1,296,000

It means, if the total sales of Hudson company is $1,296,000, the company will receive no profit. It will not incur any loss too.

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dedylja [7]

Answer:

The correct answer is letter "A": increased expenditures on education.

Explanation:

Total Factor Productivity (<em>TFP</em>) measures the total production of a region by dividing the total amount of output by the weighted average of inputs such as labor and capital. It represents growth in real output as a result of changes in labor and capital. Under such a scenario, <em>changes in the expenditures for education would change the total factor of production since it has a direct impact on labor quality. The higher the expenses in education, the higher the quality of labor.</em>

7 0
3 years ago
Olivia likes to eat both apples and bananas. At the grocery store, each apple costs $0.20 and each banana cost $0.25. Olivia’s u
icang [17]

Answer:

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

Explanation:

Let A represent the number of apples bought and B represent the number of bananas bought. Therefore since Olivia has $4 to spend:

0.2A + 0.25B = 4       (1)

Also, the tangency condition can be used to find the optimal amount of A to relative to B. It is give as:

MU_A/P_A=MU_B/P_B\\\\\frac{3\sqrt{\frac{B}{A} } }{0.2}= \frac{3\sqrt{\frac{A}{B} } }{0.25}\\\\15\sqrt{\frac{B}{A} }=12\sqrt{\frac{A}{B} }\\\\squaring\ both\ sides:\\\\\frac{225B}{A} =\frac{144A}{B}\\\\225B^2=144A^2\\\\B^2=0.64A^2\\\\Taking\ square\ root:\\\\B=0.8A

Put B = 0.8A in equation 1:

0.2A + 0.25(0.8A) = 4

0.2A + 0.2A = 4

0.4A = 4

A = 10

B = 0.8(A) = 0.8(10) = 8

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

6 0
3 years ago
According to the quadrants of the social style matrix, which of the following should salespeople do when selling to expressives?
kvv77 [185]

Answer:

B) They should demonstrate how their product will help the customers achieve personal status and recognition.

Explanation:

The social style matrix uses personality traits to categorize customers. It divides people into four categories:

  1. Driving Style: controlling, determined and active people
  2. Expressive Style: enthusiastic and emotional people
  3. Amiable Style: friendly and relationship driven people
  4. Analytical Style: thoughtful and reserved people

Since we are trying to sell goods to expressive people, then we must focus on how the goods will make them feel more important (VIPs). They seek the attention and notice of other people (they are show-off people). They want to feel important and they will buy goods that make them feel that way.

5 0
2 years ago
Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemplo
seraphim [82]

Answer:

The quarter has 3 months so all 15 weeks shall have following taxes:

Employee Wages Exempt under FUTA or SUTA

Employee 1  

Wages = 15 week x 900 = 13.500  

Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500

Employee 2  

Wages = 15 week x 1200 = 18.000  

Exempt under FUTA or SUTA = 18.000 - 7,000= 11000

From the above table.

The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,

Employee I is paid, 900 x 15 weeks

= 13,500

Employee 2 is paid, 1200 x 15 weeks

= I 8,000

For employee 1,

= 13,500 - 7,000

Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500

For employee 2,

=18,000 - 7000

Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000

The taxable wages are obtained by deducting.

= (13,500 +18000) - (6,500 +11,000)  

= 31500 - 17500

= 14000

The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,

0.057 x 14,000 = $798

FUTA.

0.008 x 14000

= $112

Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.

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