Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amoun
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Answer:
60 percent
Explanation:
Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.
Contribution margin = Sales - Variable costs
Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.
It is represented mathematically as,
=
Also, contribution margin ratio = 100 - variable cost ratio percentage.
Hence, contribution margin for three departments would be:
A = 100 - 30% = 70%
B = 100 - 40% = 60%
C = 100- 50% = 50%
This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.
Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.
Thus, weighted average contribution margin would be, 60 percent
The lease fee is equal to the monthly rent, which is formally dictated underneath an agreement between two parties, granting one party the lawful liberty to utilize the other person's real estate belongings and other fixed assets, for a limited period.
The approximate monthly lease payment is $348. 38.
<h3>How to calculate the monthly payment?</h3>Given,
- Residual percentage = 71 %
- Interest rate = 7.5 %
- Lease amount for the car = $26,000
- Number of months = 36
First calculate the residual value as:
Residual value = 71 % of the lease amount ($26,000)
Calculate the money factor as:
- <u>Step 1</u>: Calculate the monthly depreciation as:
- <u>Step 2</u>: Calculate the monthly financial charge as:
- <u>Step 3</u>: Calculate the lease amount as:
Therefore, <u>option d.</u> $348. 38 is correct.
Learn more about the lease amount here: