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lesya692 [45]
3 years ago
13

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its

variable cost per unit to $58, its contribution margin ratio will _____
Business
1 answer:
sineoko [7]3 years ago
5 0

Answer:

The contribution margin ratio will increase.

Explanation:

Giving the following information:

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.

Contribution margin ratio= (selling price - unitary variable cost)/selling price

New Contribution margin ratio= (120 - 58)/120= 0.52

Old Contribution margin ratio= (120 - 65)/120= 0.46

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Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $
Cerrena [4.2K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.

Selling price= 40/1.25= $32

A) Gross margin= 32 - 15= 17

%= 53%

B) Mettel is considering increasing its annual advertising spending from $75,000 to $150,000.

Break-even point= fixed costs/ contribution margin

Break-even points= 150,000/17= 8,824 units

C) Break-even points= 75,000/14= 5,357 units

7 0
2 years ago
Kono corp. , an american company, is trying to decide whether to open its first international branch in europe or asia. The mana
scZoUnD [109]

The managers of Kono Corp., which is an American company trying to open a branch in Europe or Asia are operating under a condition of <u>D. uncertainty</u>.

<h3>What is uncertainty?</h3>

Uncertainty refers to situations where the information is imperfect or unknown. When operating under uncertainty, some evaluations need to be undertaken to close the information gap.

<h3>Answer Options:</h3>

A. goal displacement.

B. illusion of control.

C. social reality.

D. uncertainty.

Thus, the managers of Kono Corp. are not operating under goal displacement, the illusion of control, or social reality, but it is operating under conditions of uncertainty.

Learn more about Uncertainty at brainly.com/question/3998745

6 0
2 years ago
A company's beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A
zloy xaker [14]

Answer:

Total number of equivalent units= 100,000

Explanation:

Giving the following information:

A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period.

Weighted-average method:

Units completed= 90,000

Ending inventory= 25,000*0.4= 10,000

Total number of equivalent units= 100,000

3 0
3 years ago
​Bill's Barbershop has two barbers available to cut​ customer's hair. Both barbers provide roughly the same experience and​ skil
svlad2 [7]

Answer:

A. It will take average customer to complete this process in 42minutes

B. B1=6.7 ,B2=8.6, B3=5 B4 =4

Explanation:

The process flow and calculation is attached

8 0
3 years ago
Amari has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where
Nina [5.8K]

Answer: b. has a backward-bending portion.

Explanation:

A backward-bending supply curve shows what happens when people substitute higher wages for more leisure time like Amari is doing in this scenario.

At a higher wage, people will be able to work for shorter hours as such a job will still give them the same amount of money as working longer in lower paying jobs.

After they get a certain level of payment from the higher paying job, they will then substitute the remaining hours for leisure. This creates a backward-bending curve because labor hours are reducing past a certain level of wages.

6 0
3 years ago
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