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stiv31 [10]
3 years ago
5

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per

unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 1,080,000 Variable expenses 540,000 Contribution margin 540,000 Fixed expenses 160,000 Net operating income $ 380,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio
Business
1 answer:
Tanzania [10]3 years ago
8 0

Answer:

50%

Explanation:

The formula and the computation of the contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $40 per unit - $20 per unit

= $20 per unit

So, the CM ratio is

= ($20 per unit) ÷ ($40 per unit) × 100

= 50%

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Iteru [2.4K]

Answer:

d. Predetermined Overhead Rate = Estimated Annual Overhead / Estimated Annual Activity Level

Explanation:

Predetermined Overhead rate is based on the estimated activity level, based on the estimated annual activity cost.

It calculates the rate per hour for the activity or overheads to be charged.

After the actual overheads are incurred the calculation of overheads over-applied, or under-applied is done, based on actual hours \times predetermined overhead hours.

7 0
3 years ago
The entrepreneur who does not change the method of production already introduced is.
Wewaii [24]

Drone entrepreneurs are entrepreneurs who do not change the already introduced production methods.

Drone entrepreneurs are those who don't like change. They want to do business according to their own style. These kinds of people attach pride and tradition to outdated methods. They are basically entrepreneurs who like to follow traditional methods of doing business.

Drone entrepreneurs are the ones who don't like innovative ideas. They even avoid any sort of transformation. They like the present situation of the business. Even if they have to bear loss they still do not want to modify or change their business.

Drone entrepreneurs are reluctant to accept opportunities. They always follow conventional ideas and products. They enjoy their present mode of business. They usually like their own principle and ideas to follow. They do not want to get rid of their traditional business machinery or traditional business system. They are basically orthodox in their outlook and are laggards.

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4 0
2 years ago
Assume a company has a $350 credit (not cash) sale. how would the transaction appear if the business uses accrual accounting?
Bezzdna [24]

The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

<h2>What is meant by accrual accounting?</h2>

This is what is also referred to as accrual based accounting. This type of accounting is one that has the transactions and all recorded in the books of accounts in such a way that they would reflect even though the service or the goods for which the payment is being made has not been received.

Hence from the explanation that we have here, the The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

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ziro4ka [17]

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