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Gnoma [55]
3 years ago
9

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month

for the two games appears below: Claimjumper Makeover Total Sales $ 116,000 $ 58,000 $ 174,000 Variable expenses 35,800 7,700 43,500 Contribution margin $ 80,200 $ 50,300 130,500 Fixed expenses 86,175 Net operating income $ 44,325 Required: 1. What is the overall contribution margin (CM) ratio for the company?
Business
1 answer:
Ad libitum [116K]3 years ago
5 0

Answer:

75%

Explanation:

Given that,

Total Sales = $174,000

Total Variable expenses = $43,500

Total contribution margin = $130,500

Total fixed expenses = $86,175

Net operating income = $44,325

Overall contribution margin (CM) ratio for the company:

= (Total contribution margin ÷ Total sales) × 100

= ($130,500 ÷ $174,000) × 100

= 0.75 × 100

= 75%

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Seamstresses at Rear Gear, a large maker of backpacks, have become more productive due to the firm’s recent purchase of new sewi
maksim [4K]

Answer:

Hire more labor and increase the output.

Explanation:

Because Rear Gear is a profit-maximizing firm, it will  hire more labor and increase the output.

This is because, when the firm has purchased a new sewing machine, they need to produce more in order to capture the fixed cost of production (i.e. cost of sewing machine). In order to do so, they need to hire more workers or labour to increase the total output.

4 0
3 years ago
A perfectly elastic demand function A. shows that a consumer is willing to pay any amount for the product. B. has a marginal rev
Svet_ta [14]

Answer:

C. is characteristic of an individual firm operating in a perfectly competitive market.

Explanation:

Demand is perfectly elastic if the coefficient of elasticity is infinite. It means thay consumers would only buy at one price. Once that price changes, demand falls to zero.

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.

If a seller decides to increase the price of his good in a perfect competition, demand falls to zero and reducing price woild lead to losses.

I hope my answer helps you

6 0
3 years ago
Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns inve
erik [133]

Answer: $50,000

Explanation:

To calculate David's basis in S corporation we subtract the value of the land at it's current value from his basis in S corporation stock of $270,000 on the distribution date.

We will then add his portion of the capital gain on the land because all shareholders shared it equally and as such it should increase his basis as it did theirs.

Calculating then we have,

= 270,000 - 240,000 + 20,000

= $50,000

David's basis in the S corporation becomes $50,000.

5 0
3 years ago
You borrow $8000 to buy a car, at an annual interest rate of 6%. Assume interest is compounded continuously. You make monthly pa
hram777 [196]

Answer:

We should pay $243.3 each month to pay of the loan.

Explanation

The present value of the loan is 8,000, the number of compounding periods are (3*12) =36 because payment is going to be made monthly for 3 years, the future value of the loan is 0 as there will be no lump sum payment at the end of the loan and equal payments each month, the monthly interest rate is 6%/12= 0.5%. We input these 4 values to find the monthly payment.

PV= 8,000

FV=0

N=36

I=0.5

Compute PMT= 243.3

8 0
3 years ago
Which of the following transactions will increase an asset and increase a​ liability? A. Purchasing office equipment for cash B.
Mariana [72]

Answer:C. Buying equipment on account.

Explanation:

4 0
3 years ago
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