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rewona [7]
3 years ago
11

Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales b

udget, the Creak product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?
a. $24.50
b. $22.75
c. $23.00
d. $21.00
Business
1 answer:
lyudmila [28]3 years ago
7 0

Answer:

b. $22.75

Explanation:

We know that

Contribution margin per unit= Sales price per unit - variable cost per unit

Since the selling price is $35

And, the contribution margin is 35%

Therefore, the contribution margin per unit would be

= $35 × 35 per cent

= $12.25

Now add these figures in the formula above.

Hence, the value would be equal to

= $35 - $12.25

= $22.75

The inventory and labor costs are included in the variable cost

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<span>Bill heard, as part of the corridor curriculum in his school, that certain races were not as good as others, and that coolness was the key to everything. corridor curriculum means what students teach one another outside of the class room,usually negative.</span>
7 0
3 years ago
At the beginning of the current year, Snell Co. total assets were $264,000 and its total liabilities were $182,200. During the y
larisa [96]

Answer:

The company's debt ratio at the end of the current year is 66%

Explanation:

For computing the debt ratio, we need to apply the formula which is shown below:

Debt ratio = (Total liabilities) ÷ (total assets) × 100

                = ($182,200 ÷ $276,000) × 100

                = 66%

The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.  

7 0
3 years ago
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for
Reika [66]

Answer and Explanation:

The computation of the amount is shown below:

a. For FOB destination

=  Merchandise price - Returns and allowances - discount

= $6,700 - $1,750 - ($6,700  - $1,750 )× 2%

= $6,700 - $1,750 - $99

= $4,851

b. For FOB shipping point

= Merchandise price - Returns and allowances - discount + Freight In

= $3,300 - $1,200 - ($3,300 - $1,200) × 1% + $200

= $3,300 - $1,200 - $21 + $200

= $2,279

7 0
3 years ago
A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefinitely. If the current value of the firm’s
ArbitrLikvidat [17]

Answer:

Required rate of return = 8%

Explanation:

<em>The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return. </em>

This model is represented as follows

D(1+g)/(r-g) = P

Price, D- dividend payable in now, ke- required rate of return, g- growth rate

35 = 1×(1.05)/ke-0.05

35 × (ke-0.05) = 1.05

35ke - 1.75 = 1.05

35Ke = 1.05 + 1.75

35ke = 2.8

ke= 2.8/35= 0.08

Ke = 0.08× 100 = 8%

Required rate of return = 8%

6 0
3 years ago
A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate
Lynna [10]

Answer:

$113,465

Explanation:

Calculation to determine difference in total dollars that will be paid to the lender under each loan

First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month

$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})

PMT = $804.62

Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month

$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})

PMT = $ 978.87

Now let determine the Total difference

Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)

Total difference= $113,465

Therefore difference in total dollars that will be paid to the lender under each loan is $113,465

6 0
3 years ago
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