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3 years ago

If sales are $799,000, variable costs are 75% of sales, and operating income is $222,000, what is the contribution margin ratio?

Business

1 answer:

Serggg [28]3 years ago

5 0

Answer:

25%

Explanation:

The contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin) ÷ (Sales volume) × 100

where,

Contribution margin = Sales revenue - variable cost

The variable cost is = $799,000 × 75% = $599,250

And, the sales revenue is $799,000

So, the contribution margin is

= $799,000 - $599,250

= $199,750

And, Contribution margin ratio = (Contribution margin) ÷ (Sales revenue) × 100

= $199,750 ÷ $799,000

= 25%

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It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is 1.2. The company would like

Anuta_ua [19.1K]

Answer:

A. The company should take Short position and

140 contract

B. The company should take Long position and 60 contract

Explanation:

Calculation for what position that the company should take

Using this formula

Company position=(Beta of the portfolio*Change in beta of the portfolio) *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.2-0.5)*$100 million/2,000*250

Company position=0.7*$100 million/500,000

Company position=$70,000,000/500,000

Company position=140 contract

Therefore the position that the company should take will be SHORT position with 140 contract

B. Calculation for the increase in beta of the portfolio from 1.2 to 1.5 and what position tthr company should take in the futures contract and how many contracts

Using this formula

Company position=Increase in beta of the portfolio *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.5-1.2)*$100 million/2,000*250

Company position=0.3*$100 million/500,000

Company position=$30,000,000/500,000

Company position=60 contract

Therefore the company should take Long position and 60 contract

4 0

3 years ago

A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory

ohaa [14]

Purchases = Sales units + Closing inventory - Beginning Inventory
= 6,000 + (1,000 * 115%) - 1,000
= 6,150 units

7 0

3 years ago

Carla vista co. received proceeds of 5585020 on a 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of 530

Lapatulllka [165]

The carrying value of the bond is $489,560.

<h3>What is the carrying value of a bond?</h3>

A bond's carrying value is defined as its par value or face value plus any unamortized premiums or discounts, minus any unamortized discounts.

This is deducted because it is represented on the balance sheet, the carrying value is the difference between the par value and the premium or discount.

<u>Computation of Carrying value of Bond</u>:

According to the given information,

First, there is a need to calculate the premium amount, that amount is calculated as follows:

Premium Amount = Face value of Bond – Proceeds received

Premium Amount = $530,000 – $558,5020

Premium Amount = -$505,5020

Now, there is a need to finding the Annual amortization value, this can be found out by the following:

Annual amortization = Premium Amount/Time period

Annual amortization = -$505,5020/10

Annual amortization = -$505,502

Then, the carrying value of the bond will be:

Carrying value of bond = face value – unamortized discount

Carrying value of bond = $530,000- (-$505,502×8%)

Carrying value of bond = $489,560

Therefore, the carrying value of the bond is $489,560.

Learn more about the carrying value of bond, refer to:

brainly.com/question/14531473

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3 0

2 years ago

In its fiscal 2018 annual report, Nike, Inc. reported cash of $4,000 million at the beginning of the year. The statement of cash

gulaghasi [49]

Answer:

Option C, $5,020 million is correct

Explanation:

The below is the statement of cash flow for Nike Inc 2018:

Net cash from operating activities $3,027

Net cash from investing activities ($1,067)

Net cash from financing activities ($940)

Net increase in cash and cash equivalent in 2018 $1,020

Beginning Cash and cash equivalent $4,000'

Balance in cash account at the end of fiscal year $5,020

The correct option then is C.$5,020 million.

Option A is wrong because it only takes into consideration net cash from operations,option B is also as it considered only the increase in cash in the year without the opening balance of cash,while option D and E are obviously irrelevant

5 0

3 years ago

Zale wants to determine how his stock portfolio is doing compared to the overall market. What should he do? A. compare his stock

kvv77 [185]

Compare to index like SP500

4 0

3 years ago

Read 2 more answers