Answer:
50%
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin ratio = (price - variable costs) / price
variable cost = 80 - 20 = 60
price = 120
(120 - 60) / 120 = 50%
Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
Answer:
Option "C" is the correct answer to the following situation.
Stimulus Response Selling
Explanation:
Stimulus-Response Strategy- A marketing strategy that depends on the salesperson's freedom to say the right thing stimuli to get a favorable response from the buyer's answer, also referred to as the Canned Method because a template is widely used.
Marie uses a combination of statements and questions when trying to sell goods to potential buyers and tries to construct statements and questions so that the prospective buyer can receive beneficial responses.
Answer: C - Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm.
Explanation: Since the benefit of owning the dog is worth $200 to Abe and Jenny is willing to pay him $300 to send the dog to his parents who lives on an isolated farm. Abe stand to gain an extra $100 above his initial benefit of keeping the dog for $200.
Answer:
d) $4.00.
Explanation:
Net Income = $34,000
Common shares outstanding = 8,500 shares
Earning Per share = Net Income for the period / Common shares outstanding
Earning Per share = $34,000 / 8,500 shares
Earning Per share = $4 per share
The company's earnings per share is $4.
Divided declared has nothing to do in the calculation of Earning per share because we just measure the earning against each share which involves net income and number of outstanding shares only.
