Answer:sales must have amounted to:$704,000
Explanation:
Contribution ratio = Sales ratio - Variable cost ratio
= 100%- 75%
=25%
Sales to break even = Fixed expenses / Contribution margin ratio
Therefore,
Fixed expenses = Sales to break even x Contribution margin ratio
=$840,000 x 25%
=$210,000
Contribution margin can also be calculated as
Fixed expenses- Operating loss
=$210,000 -$34,000
=$176,000
Sales = Contribution margin/ Contribution ratio
= $176,000/25% =$704,000
Answer:
Stock price=$128.44
Explanation:
Calculation for stock price
First step is to calculate for dividend payout ratio using this formula
Dividend payout ratio=Dividend payout/Earnings
Let plug in the formula
Earnings=($1.90/0.25)
Earnings=$7.6
Now let calculate for PE ratio using this formula
PE ratio=Stock price/EPS
Let plug in the formula
Stock price=$7.6*16.9times
Stock price=$128.44
Therefore Stock price will be $128.44
Answer:
When a company sells different securities together (this usually happens during mergers and acquisitions):
- and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
- and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.
Answer:
c
Explanation:
Bundling is when separate products of a company are combined together and sold to customers usually at a lower price
