Fixing prices,rivals, and rules
Answer:
$6,200 Increase
Explanation:
Given that,
Costs Marigold Company = $26 per unit
Fixed cost = $8
Variable cost = $18
Selling price = $38 per unit
Foreign wholesaler offers to purchase 6200 units at $21 each.
Shipping costs = $2 per unit
Effect on net income:
= Sales - Variable cost - special shipping cost
= (6,200 × $21) - (6,200 × $18) - (6,200 × $2)
= $130,200 - $111,600 - $12,400
= $6,200 Increase
It is True
<h3>What is contribution margin ratio?</h3>
- A company's contribution margin ratio (CM ratio) is equal to its revenue less all variable costs divided by its revenue.
- It denotes the incremental benefit of producing one more unit.
- The contribution margin ratio is the percentage difference between a company's sales and variable costs.
- This ratio indicates how much money is available to cover fixed costs.
- A good contribution margin is one that can cover the costs of production while also generating a profit.
- If the contribution margin is too low or negative, the company will lose money.
- Contribution Margin = Fixed Costs + Net Income. To determine the ratio: Contribution Margin Ratio = (Net Sales Revenue -Variable Costs ) / (Sales Revenue)
To learn more about contribution margin ratio from the given link
brainly.com/question/24039258
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Answer:
Net cash flows from operating activities = $94,750
Explanation:
Net cash flows from operating activities = Net income + Depreciation expense - Increase in inventory - Decrease in salaries payable + Decrease in accounts receivable + Amortization of patent + Amortization of premium on bonds + Increase in accounts payable
=> Net cash flows from operating activities = $64,250 + $13,750 - $4,875 - $3,575 + $6,500 + $1,025 + $6,925 + $10,750
=> Net cash flows from operating activities = $94,750
N.B. Cash Dividends fall under Cash Flow from Financing Activities, that's why it has not been taken in account in Net cash flows from operating activities.
