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3 years ago

LO 3.1Define and explain contribution margin ratio.

Business

1 answer:

Andreyy893 years ago

4 0

Answer:

Definition:

Contribution margin ratio is defined as, the difference between revenue and variable costs of the entity, expressed as percentage of sales.

Explanation:

Basically, the contribution margin ratio indicates that how much of sales amount is available to the entity to cover the fixed expenses incurred by the entity. It can be calculated using the following formula.

Formula= Contribution of the entity/ Sales Revenue of the entity.

If the contribution margin ratio of any entity is for example 50%, it will indicate that 50% of the sales amount is available to the entity tocover the fixed expenses which are to be incurred by it.

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2. What has Calvina done wrong?

Nikolay [14]

Answer:

What are you talking about what is the rest of the question-to make it more since.

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3 years ago

The basic purpose of the securities laws in the United States is to regulate the issuance of investment securities by:_____.A. P

geniusboy [140]

Answer:

B. Requiring disclosure of all relevant facts so that investors can make informed decisions.

Explanation:

The Securities and Exchange Commission (SEC) is a governmental agency saddled with the sole responsibility of regulating the securities or capital markets, as well as protecting investors in a country.

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3 years ago

On january 1, 2017 hillop, inc. had total assets of $370,000. during the year, the company purchased new machinery worth $8

makvit [3.9K]

<span>asset turnover ratio is the ratio of the value of a company's sales or revenues generated relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue. Given that the sales is 60k and the value of the asset is 370k, the ratio is simply the sales / value of assets which is 60/(370-88).</span>

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3 years ago

Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai

cluponka [151]

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

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3 years ago

The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired ra

Julli [10]

Answer:

c. 1.14

Explanation:

Year Cash Flow PV Factor 10% PV of Cash flows

($) ($)

Year 1 180,000 0.909 163,620

Year 2 120,000 0.826 99,120

Year 3 100,000 0.751 75,100

Year 4 90,000 0.683 61,470

Year 5 90,000 0.621 55,890

Total = 455,200

Initial cash outflow = $400,000

Cash inflow = $455,200

So, we can calculate the present value index by using following formula,

Present value index = Cash inflow ÷ Cash outflow

= $455,200 ÷ $400,000

= 1.14

4 0

3 years ago