Answer:
3.60
Explanation:
Given that,
Sales units = 1,000
Sales price per unit = $60
Variable expenses = 40% of the selling price
Total Fixed cost = $26,000
Contribution margin per unit:
= Selling price - Variable cost
= $60 - ($60 × 40%)
= $60 - $24
= $36
Total contribution:
= Contribution margin per unit × Sales units
= $36 × 1,000
= $36,000
Profit = Total contribution - Fixed cost
= $36,000 - $26,000
= $10,000
Degree of operating leverage:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)
= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)
= 36,000 ÷ 10,000
= 3.60
Answer:
a. $180
Explanation:
Bad debt expenses is generally classified as Administrative expense and hence it is included in the expense section of the income statement before the calculation of the Net Income.
From the question it is evident that the write offs during the period were $180 and hence the expense recorded in the Income statement as bad debt expense would be $180 because they are unrecoverable for the current period.
Hope this helps.
Thanks buddy.
I bought an apartment with my boyfriend last year because we had been dating for 4 years and he proposed. In order to prepare, we saved up our money, asked the bank for their opinion on the best coarse of action financially, and we tried to decide how much of our savings we should use without being irresponsible. (This is just an example. I am 15 and will be forever alone but yea this is what I would do anyways)
Answer:
The marginal propensity to save is 0.4
Explanation:
The marginal propensity to save is 1 - marginal propensity to consume.
The marginal propensity to consume is the proportion of an increase in income that the consumers will spend from this increased income and the marginal propensity to save is the proportion of the increase in income that will be saved.
The marginal propensity to consume (MPC) = Change in consumption / change in income
The MPC = (2100 - 1500) / (3000 - 2000) = 0.6
Thus, the marginal propensity to save is 1 - 0.6 = 0.4
Answer:
$2,200
Explanation:
Calculation to determine what should this recent grad be willing to pay in rent per month
First step is to calculate the work days
Using this formula
Work days = 5 days per week x 1 hour to work+ 1 hour from work
Let plug in the formula
Work days = 5 days a week x 2 hours
Work days= 10 hours
The second step is to calculate the monthly commuting in a standard month of 4 weeks
Monthly commuting = 4 x 10 hours
Monthly commuting = 40 hours
Third step is to calculate hourly how much she will be able to maximize
Amount maximize = $25 x 40 hours (commuting hours)
Amount maximize= $1,000
Now let determine The total she will be willing to pay in rent
Rent per month= $1,200 + $1,000
Rent per month=$2,200
Therefore what should this recent grad be willing to pay in rent per month is $2,200
