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3 years ago

The contribution margin is determined by subtracting _______.

Business

1 answer:

sineoko [7]3 years ago

5 0

Answer:

c. variable product and variable period cost from sales.

Explanation:

Contribution Margin is obtained by subtracting the total variable costs from the sales. This is also known as direct costing. Deducting fixed expenses from the contribution margin yields profit . Contribution margin is used in various ratios such as the contribution margin ratio and break even sales is also determined by using it sometimes. Contribution margin is a tool for managers as sales figures guide cost figures. The variable cost of goods sold varies directly with sales volume and the influence of production on profit is eliminated.by deducting only the variable product costs and not the variable period costs we get gross contribution margin. After deducting the variable period costs we get the contribution margin.

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3 years ago

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Giving customers time to pay their bill generates more sales. But when a recession hits, they may have trouble making payments.

Anna [14]

Answer:

1. A compromise should be reached.

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The business however, also has bills to pay and so needs money to maintain operations as well. A compromise needs to be reached. The owner should contact the other businesses still owing and negotiate with them to pay a certain portion of what they owe with the rest coming later.

This could give the owner enough to keep the business running whilst maintaining the loyalty of his customers.

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3 years ago

Question Content Area

GarryVolchara [31]

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2 years ago

Fixing your sink is an example of a nonmarket transaction.

svetoff [14.1K]

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4 years ago

Read 2 more answers

At the beginning of the current period, Marin Corp. had balances in Accounts Receivable of $195,100 and in Allowance for Doubtfu

melamori03 [73]

Answer:

The journal entries are as follows:

(a) (i) Sales A/c Dr. $745,500

To Accounts receivable A/c $745,500

(To record the sales)

(ii) Cash A/c Dr. $835,120

To Accounts receivable A/c $835,120

(To record the collections)

(b) Allowance for doubtful accounts A/c Dr. $7,831

To Accounts receivable A/c $7,831

(To record the write-off of uncollectible accounts during the period)

To Allowance for doubtful accounts A/c $3,184

(To record the recovery of the uncollectible account)

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To Accounts receivable A/c $3,184

(To record the recovery)

(d) Bad debts expense A/c Dr. $19,397

To Allowance for doubtful accounts $19,397

(To record the bad debt expense for the period)

Workings:

Bad debts expense:

= $24,100 - (9,350 - 7,831 + 3,184)

= $19,397

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4 years ago