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Usimov [2.4K]
3 years ago
11

Marigold Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gea

r. Marigold incurs $5735000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is
Business
1 answer:
Luba_88 [7]3 years ago
7 0

Answer:

Break-even point (dollars)= $15,500,000

Explanation:

Giving the following information:

The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Marigold incurs $5735000 in fixed costs.

The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%

<u>To calculate the break-even point in dollars, we need to use the following formula:</u>

Break-even point (dollars)= Total fixed costs / Weighted average contribution margin ratio

Break-even point (dollars)= 5,735,000 / (0.3*0.65 + 0.5*0.35)

Break-even point (dollars)= $15,500,000

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A US Multi National Corporation has a contract for a relatively predictable long-term inflow of Japanese yen. The firm decides t
nika2105 [10]

Answer: a natural hedge

Explanation:

Natural hedge is simply a strategy that is used by a company in order to reduce risk and this is done through the investment in the assets that their performance is not positively correlated.

Such companies typically makes revenue in the currency of another country. Since the firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen, this hedging strategy is known as natural hedge.

6 0
3 years ago
Which of the following is not a factor of production A. land. B. entrepreneurship. C. money. D. human capital.
kirill [66]

Answer:

D. HUMAN CAPITAL

Explanation:

Factors of Production are the resources/ inputs used to produce final finished goods output.

There are 4 factors of production:

  • Land - is paid 'rent' as factor income
  • Labour - is paid 'wages' as factor income
  • Capital (Money) - is paid 'return on investment' i.e 'interest' as factor income
  • Entrepreneur (Entrepreneurship) - is paid reward as 'profit'.

Labour & Human Capital seeming to be synonyms are different :- 'Human Capital' is the stock of knowledge & skills embodied in 'labour', enabling them to perform tasks of economic value. Firms invest in human capital i.e knowledge/skill enhancement of factor of production 'labour'.

So, Labour and <u>not</u> HUMAN CAPITAL is a factor of production.

3 0
3 years ago
Olav owns precision painting, a sole proprietorship. olav's liability is
MakcuM [25]

Answer:

The answer is D.

Explanation:

A sole proprietorship is a one man business( it is owned and run by one man). Sole proprietorship is not a distinct business entity i.e there is no legal distinction between the owner and the business entity.

Because the business is not separated from its owner, he or she can be liable for the debt of the business. The sole proprietorship can be sued directly for any bad debt the business incurs. This is what unlimited liability means and it is the main disadvantage of of sole proprietorship.

6 0
3 years ago
Mayan company had net income of $33,480. the weighted-average common shares outstanding were 9,300. the company has no preferred
Dvinal [7]

Answer:

Earnings Per Share = $3.6

Explanation:

Given

Net Income Average = $33,480

Weighted-average common shares outstanding = 9,300

Shares sold = 4,300

Required

Calculate the company's earnings per share.

Earning per share is calculated as thus;

Let N represent the Net Income; P represent the Preferred Dividend and W represent the Weighted-average common shares outstanding

Earnings Per Share = \frac{N - P}{W}

The question says there was no preferred stock;

So, P= 0

Substitute $33,480 for N and 9,300 for W.

The formula becomes;

Earnings Per Share = \frac{33,480 - 0}{9300}

Earnings Per Share = \frac{33,480}{9300}

Earnings Per Share = 3.6

Hence, the calculated Earnings per share of Mayan company is $3.6

3 0
3 years ago
In strategic management, both the short-term and long-term perspectives need to be considered because a. the creative tension be
astra-53 [7]

Answer:

a. the creative tension between the two forces managers to develop more successful strategy.

Explanation:

It is correct to say that short-term and long-term strategies must be designed individually as the creative tension between the two forces managers to develop more successful strategies.

It is essential that in strategic planning the short-term and long-term action plans are well specified, so that the strategic development understands the organizational whole and the strategies are aligned, since the short-term actions will consequently impact those of long term.

3 0
3 years ago
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