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NISA [10]
3 years ago
6

Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a

) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations
Business
1 answer:
tatyana61 [14]3 years ago
5 0

Answer:

a. Contribution margin ratio = Contribution per unit/selling price

                                              = $18/$$5

                                              = 0.4 = 40%

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

                                       = $45 - $27

                                       = $18

c. Income from operations                         $

Total contribution ($18 x 160,000 units)  2,880,000

Less: Fixed cost                                            975,000

Income from operations                           1,905,000

Explanation:

Contribution margin ratio is the ratio of contribution per unit to selling price

Contribution per unit is the excess of selling price over variable cost per unit

Income from operation is the excess of total contribution over fixed cost

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Olenka [21]

Answer:

The rewards and punishment serve the purpose of motivating the employees.

Explanation: First of all, we must establish that companies should have set guidelines or principles on which they operate, especially when it comes to ethics and acceptable workplace behavior.

Secondly, we must acknowledge the fact that there is always a reward or consequence for our actions. Especially in the workplace where employees are constantly monitored.

Now, based on the Theory X of management that was developed by Douglas McGregor, which basically states that employees are unmotivated and unwilling to work, and as a result of this, they need to be constantly prompted, rewarded or punished to make sure that they complete their tasks.

So to answer the question, the rewards and punishments serve the purpose of motivating the employees to be of good conduct in the workplace, because if this is not done, bad behavior might spread throughout the company and this will cause further problems.

3 0
3 years ago
E20.5 (LO 3) (Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pe
GuDViN [60]

<u>Solution and Explanation:</u>

<u>Computation of service years </u>

Year  Jim  Paul  Nancy  Dave  Kathy  Total  *  Cost  Amortization

2014  1  1  1  1  1  5            *  3000     15000

2015  1  1  1  1  1  5             *  3000  15000

2016  1  1  1  1  1  5            *  3000  15000

2017   1  1  1  1  4            *  3000  12000

2018    1  1  1  3             *  3000  9000

2019     1  1  2              *  3000  6000

                               72000

<u>Future years of service </u>        

Jim         3          

Paul  4          

Nancy  5          

Dave  6          

Kathy  6          

       24          

cost per service year $=\$ 72000 / 24=\$ 3000$

8 0
3 years ago
The account that is brought up to date after the closing entries have been journalized and posted is the ____.
yanalaym [24]

Complete/Correct Question:

The account that is brought up to date after the closing entries have been journalized and posted is the ____.

A. Sales account

B. Purchases account

C. Capital Stock account

D. Retained Earnings account

Answer:

D, retained earnings account

Explanation:

Retained earnings can be defined as the accumulated income of a firm, that is retained by firm, after a certain period of time. After a certain time could be after the reporting period.

Simply put, retained earnings can be said to be the amount of income that a firm keeps after a period such as declaring financial reports.

The retained earnings is always reported and recorded in the stakeholder's equity and the company's balance sheets respectively. Retained earnings signify or represent how much of its profits a firm has reinvested itself.

Cheers.

5 0
2 years ago
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Answer:

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Explanation:

Businesses can only deduct $25 per gift per client, in this case the client's wife is not an actual client, so Sue can only deduct $25 for the gift plus the wrapping expenses. She can also deduct the $400 spent in the calendars and the $370 watch.

Sue's total deductions = $25 + $6 + $400 + $370 = $801

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mars1129 [50]

Answer:

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Explanation:

Since the client will live in state B for an extended period of time, at least 4 years if she completes medical school, the broker-dealer must be registered in state B if he wishes to continue doing business with her.

If the client would have only gone to state B for a few months, then the broker could have still worked with her without registering in state B since the client could be considered on a vacation trip.

7 0
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