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Vladimir [108]
3 years ago
13

Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu

tion margin ratio for Young Company? (Enter your answer as a whole number.) % b. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,000, and fixed costs were $1,500,000, what is the income from operations?
Business
1 answer:
quester [9]3 years ago
7 0

Answer:

a. The contribution margin ratio will be 41%

b. The income from operations will be $12,420,000.

Explanation:

a. The sales are given at $112,900,000.

The fixed costs are $25,000,000.

The variable costs are $66,611,000.

The contribution margin will be

=Sales-variable costs

=$(112,900,000-66,611,000)

=$46,289,000

The contribution margin ratio will be

=(Contribution margin/sales)*100

=($46,289,000/ $112,900,000)*100

=41%

b. Now, if the contribution margin ratio is 40%.

The sales are given at $34,800,000.

The fixed costs are $1,500,000.

Income from operations or operating profit will be

=(sales*contribution margin ratio)-fixed cost

=$(34,800,000*0.4)-$1,500,000

=$12,420,000

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Vadim26 [7]

Answer:

Accounting profit - Your actual profit

Economic profit - Profit, but opportunity cost factored out

Explanation:

Accounting profit is how much you made (Revenue - Explicit Cost.

Economic profit includes implicit costs, or opportunity cost. If you could have made $100,000 at a different job, you subtract that. If Accounting-Economic profit is 0 or higher, you should stay in business.

7 0
2 years ago
Question #2: Why should we simplify expressions in algebra Using race
rusak2 [61]

Answer:

Why should we simplify expressions in algebra Using race?

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4 0
2 years ago
Read 2 more answers
The current price for a good is ​$25​, and 100 units are demanded at that price. The price elasticity of demand for the good is
mrs_skeptik [129]

Answer:

Consumer surplus increases by $2

Explanation:

The consumer surplus can be defined as the benefit that consumers gain when they pay less for a good that they are willing to pay more for.

a). Determine the final demand as follows;

Price elasticity of demand=% change in price/% change in demand

where;

price elasticity of demand=-1

% change in price={(Final price-initial price)/initial price}×100

Final price=$24

initial price=$25

% change in price=(24-25)/25=(1/25)×100=-4%

% change in demand=x

replacing in the original expression;

-1=-4/x

x=4%

% change in quantity={final quantity-initial quantity/initial quantity}×100

let final quantity=y

4%={(y-100)/100}×100

0.04=(y-100)/100

4=y-100

y=4+100=104

final quantity=104 units

Consumer surplus=(1/2)×change in price×change in quantity

where;

change in price=25-24=1

change in quantity=104-100=4

Consumer surplus=(1/2)×1×4=2

Consumer surplus increases by $2

8 0
2 years ago
The Fluffy Feather sells customized handbags. Currently, it sells 18,000 handbags annually at an average price of $89 each. It i
MAVERICK [17]

Answer: $146,000

Explanation: $146,000

Sales = (Firms estimates x low-priced line) - (Higer-Priced line x Average Price)

(7,000 × $59) + (-3,000 × $89) = $146,000

8 0
3 years ago
Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Custo
Iteru [2.4K]

Answer:

d. $90,000, $60,000, $30,000 respectively.

Explanation:

The computation of price allocated is shown below:-

Ratio of values $90,000 : $60,000 : $30,000

= 3 : 2 : 1

Total cost = $180,000

Equipment = $180,000 × 3 ÷ 6

= $90,000

Installation= $180,000 × 2 ÷ 6

= $60,000

Training = $180,000 × 1 ÷ 6

= $30,000

Therefore the Equipment, Installation, Training is $90,000, $60,000, $30,000 respectively.

7 0
3 years ago
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