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harkovskaia [24]
3 years ago
7

Contribution Margin Molly Company sells 37,000 units at $19 per unit. Variable costs are $11.59 per unit, and fixed costs are $1

09,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $
Business
1 answer:
yarga [219]3 years ago
5 0

Answer:

(a) Contribution margin ratio = 0.39, or 39%

(b) the unit contribution margin = $7.4 per unit

(c) income from operations = $164,470

Explanation:

Total revenue = 37,000 × $19 = $703,000

Total variable cost = 37,000 × $11.59 = $428,830

Margin = $703,000 - $428,830 = $274,170

(a) the contribution margin ratio

Contribution margin ratio = $274,170/$703,000 = 0.39, or 39%

(b) the unit contribution margin

Unit contribution margin =  $19 - $11.59 = $7.4 per unit

(c) income from operations

Income from operations = $274,170 - $109,700 = $164,470

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k0ka [10]

ANSWER:

Social change refers to any significant alteration over time in behaviour patterns and cultural values and norms. By “significant” alteration, sociologists mean changes yielding profound social consequences.

8 0
2 years ago
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilit
liraira [26]

Answer:

d. $250,000.

Explanation:

In order to calculate the expense of the goodwill, we must first calculate the net asset's fair value shown below:

The fair value of net asset = The fair market value of total assets - the fair market value of liabilities

= $125,000 + $750,000 - $175,000

= $700,000

And, the purchase value of all outstanding stocks is $950,000

So, the goodwill would be  

= $950,000 - $700,000

= $250,000

3 0
3 years ago
When potential real GDP is equal to​ 70, this economy is in recession . The amount of the shortfall in planned aggregate expendi
leonid [27]

Answer: Option (D) is correct.

Explanation:

If the potential GDP is 70 and economy is in recession. Potential GDP is the GDP of an economy which can be achieved with the best utilization of economy's resources.

The amount of the shortfall in planned aggregate expenditure is equal to the vertical distance between the 45 degree line and the AE = Y, at a level of potential real GDP.

This is also shown by an arrow in the diagram.

4 0
3 years ago
Given the following financial data for Boston Technology, compute the firmâs degree of combined leverage.
Otrada [13]

Answer:

For year 2010

Degree of combined leverage is 3.82

For year 2011

Degree of combined leverage is 4.11

Explanation:

Computing the degree of combined leverage of the firm with the formula stated below as:

Degree of combined leverage = Contribution margin / EBT

where

Contribution margin is computed as:

Contribution margin = Sales - Variable Cost

EBT (Earnings Before tax) is computed as:

EBT = EBIT - Interest

Now, computing the same by applying the formula:

For year 2010

Contribution margin = $700,000 - $406,000

= $294,000

EBT = $119,000 - $42,000

= $77,000

Degree of combined leverage = $294,000 / $77,000

= 3.82

For year 2011

Contribution margin = $760,000 - $448,000

= $312,000

EBT = $122,000 - $46,000

= $76,000

Degree of combined leverage = $312,000 / $76,000

= 4.11

7 0
3 years ago
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
lara [203]

Answer:

The correct answer is $13.900.

Explanation:

To carry out the verification balance, the nature of the accounts presented in the normal balance of the organization must be taken into account. We have that the assets and income have a debit nature, so it is necessary that the corresponding to that premise are:

Accounts receivable $ 1,800 - Active

Insurance expenses $ 1,300 - Expenses

Prepaid insurance $ 2,000 - Expenses

Land $ 3,000 - Active

Cash $ 3,200 - Assets

Salary Expenses $ 1,400 - Expenses

On the other hand there are accounts that despite being of a credit nature, have credit movements as a result of ordinary activities, which would be:

Dividends: $ 1,200 - Debit nature liability

TOTAL DEBITS: $ 13,900

8 0
3 years ago
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