Answer:
41 percent
Explanation:
Given : Budgeted Sales $112,900,000
Fixed Costs $25,000,000
Variable Costs $66,611,000
Contribution margin = Net Sales - Variable costs
= $112,900,000 - $66,611,000
= $ 46,289,000
Contribution Margin Ratio = 
= 
= 41%
Contribution margin ratio indicates the percentage of sales remaining so as to cover a firm's fixed expenses. It also represents how much percentage of sales is required to cover the variable costs.
It is also expressed as , 100 - Variable cost ratio (in percentage)
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
Answer:
It is more profitable to continue to rework the phones and sell them.
Explanation:
Giving the following information:
Signal mistakenly produced 1,000 defective cell phones.
<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>
Sell as it is:
Income= 33*1,000= $33,000
Rework:
Costs= 88*1,000= $88,000
Sales= 144*1,000= $144,000
Total gain= $56,000
It is more profitable to continue to rework the phones and sell them.
Answer:
Pedestrian : A person who walks on foot rather than in vehicles.
Answer:
Dollar voting is an analogy that has been used to refer to the impact of consumer choice on producers' actions through the flow of consumer payments to producers for their goods and services.
