1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
masha68 [24]
3 years ago
9

In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be

lower in the company with a higher proportion of fixed expenses in its cost structure.A. True
B. False
Business
1 answer:
Bas_tet [7]3 years ago
4 0

Answer:

False

Explanation:

The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost

For example:

                                         Company A                                 Company B

sales price per unit                $100                                            $100

total costs per unit                  $80                                              $80

variable costs per unit            $50                                              $40

<u>fixed costs per unit                 $30                                              $40   </u>

contribution margin                $50                                              $60

You might be interested in
In this situation, the male employees are individual members of an organization that are engaged in a conflict because of their
N76 [4]

Answer:

<u>Interpersonal </u>

Explanation:

When a conflict arises between individual members of an organization owing to differences in goals and values, such a conflict is referred to as interpersonal conflict.

As the word interpersonal suggests, inter i.e between and personal i.e person to person conflict, interpersonal conflict arises when the goals and values of individuals differ owing to which disagreements arise.

Goals and values may differ owing to several factors. Individual values are an outcome of an individuals own conscience and judgement apart from the society, an individual belongs to.

Such a situation is undesirable as it disrupts the coordination among employees and at the same time creates an atmosphere which is non conducive.

8 0
3 years ago
The following book and fair values were available for Westmont Company as of March 1.
-BARSIC- [3]

Answer:

DR Inventory                                        $609,000  

     Land                                                 $1,086,750  

     Buildings                                         $2,138,250  

     Customer Relationships                $842,250  

     Goodwill                                           $965,750  

CR Accounts Payable                                           $102,000  

       Common Stock                                                       $56,400

       Additional Paid-In Capital                                     $1,353,600

        Cash                                                                       $4,130,000

Working

Common Stock = 28,200 shares * $2 = $56,400

Additional Paid in Cap = 28,200 shares * ( 50 - 2) = $1,353,600

DR Additional Paid-In Capital                            $32,400

CR Cash                                                                                $32,400

DR Professional Services Expense                   $49,800

CR Cash                                                                                $49,800

8 0
3 years ago
How does applying econometrics to economics validate economic decisions for an organization? support your response with an examp
nordsb [41]
<span>By utilizing economic theories, for example, Frequency disseminations, likelihood and likelihood conveyances, actual impedance, straightforward and various relapse investigation, synchronous conditions models and Time arrangement techniques, econometrics utilizes these speculations, math and statistical obstructions to evaluate the financial hypotheses.</span>
8 0
3 years ago
M8-1 Evaluating the Decision to Extend Credit [LO 8-1 Nutty Productions Inc. generated service revenue of $48,000 and income fro
emmasim [6.3K]

Answer:

Yes

Explanation:

In this question, we have to compare the total income based on credit extended The computation is shown below:

If credit is not extended, then the total income would be

= Service revenue + income from operations

= $48,000 + $19,000

= $67,000

If credit is extended, then the total income would be

= Service revenue + income from operations - additional expenses for wages and bad debts

= $87,000 + $19,000 - $34,000

= $72,000

Yes the company extend credit as the total income is increased by $5,000

7 0
3 years ago
Data were collected on the amount spent by 64 customers for lunch at a major Houston restaurant. These data are contained in the
Naddik [55]

Answer:

a) ME= 1.93

b) confidence interval= (19.59,23.45)

Explanation:

a) Sample of customers is 64, population standard deviation is 6 and confidence level is 99%

Sample mean= 21.52

Sample size= 64

Confidence level= 99%

Population standard deviation= 6

Standard error of the mean= 0.75

Z-value= -2.5758 (From Z table)

Interval half width= 1.9319

Margin of error at 99% confidence interval is 1.93 from the output.

b) Confidence interval

Interval upper limit= 19.59

Interval lower limit= 23.45

99% confidence interval is (19.59, 23.45) from the output.

ME= \frac{23.45-19.59}{2}= 1.93

5 0
3 years ago
Other questions:
  • If you find a job you’re interested in on LinkedIn you should immediately
    8·1 answer
  • According to the law of increasing opportunity cost,
    11·1 answer
  • Pandora invested in the Box Mutual Fund by purchasing 1,000 shares on November 9, Year 1. On the first day of every month, the B
    12·1 answer
  • Suppose you have three producers of oil A, B, and C, with extractions costs of $8, $10, and $12 per barrel of oil. Assume there
    7·1 answer
  • You have two options for how to spend the afternoon. you can either go see a movie with your roommate or work as a tutor for the
    14·1 answer
  • Car expenses- sales<br>​
    13·2 answers
  • Which of the following statement is correct? A.A change in demand is a movement along the demand curse, and a change in the quan
    7·1 answer
  • Novak’s Market recorded the following events involving a recent purchase of inventory: Received goods for $112000, terms 2/11, n
    6·1 answer
  • You sign a contract to purchase a machine that will allow you to travel back in time and meet abraham lincoln. assuming that tim
    9·1 answer
  • __________ refers to phishing with a specific, high-value target in mind. for example, the attacker may target the president or
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!