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Bezzdna [24]
3 years ago
9

Shugart sells two products. Product A sells for $88 with variable costs of $38. Product B sells for $143 with variable costs of

$47. The sales mix is 32% for products A while product B's is the remainder (or 100% less 32. What is the weighted average unit contribution margin rounding to the nearest penny? As always, do not use $ signs.
Business
1 answer:
andrew11 [14]3 years ago
7 0

Answer:

$81 approx

Explanation:

Contribution margin refers to sales receipts in excess of variable costs incurred. This represents contribution from a product earned which is after variable costs have been incurred.

<u>Product A</u>

Selling price per unit = $88

Variable cost per unit = $38

Contribution per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $88 - $38 = $50

Similarly, for <u>product B</u>,

Contribution margin per unit = $143 - $47= $96

<u>Products         Weights            Contribution        Weighted contribution</u>

A                       0.32                    50                            16

B                       <u>0.68</u>                    96                            <u>65.28</u>

                         1.00                                                     81.28

Hence, weighted average contribution margin is $81.28 or $81 approx

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Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company
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Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

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2 years ago
Mill Co.'s trial balance included the following account balances at December 31, Year 6:
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Answer:

D) $45,000

Explanation:

The computation of the amount which is included in the current liability section is shown below:

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The current liability is that liability which is arise for one year. Since, the notes payable is a long term liabilities so we do not consider in the computation part.

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The Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

<h3>What is a free trade?</h3>

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This policy tends to increase the volume of international trade among member countries and also allow them to increase their specialization in their respective comparative advantages.

Hence, in the graph given, the Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

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Answer:

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Based on the information provided within the question it can be said that the term that best illustrates the situation is Strategic dissonance. This term intents to describe the disconnect between the organization's actions from their actual intent. Which seems to be the case in this scenario as Cardwire Inc. has lowered it's prices in order to sell more and lower it's overall costs but has instead spent more on buying raw materials.

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