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Vesna [10]
3 years ago
5

Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, an

d fixed expenses were $65,000.
Required:
1. What is the company’s contribution margin (CM) ratio?
2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,000?
Business
1 answer:
valkas [14]3 years ago
4 0

Answer:

(1) 0.4 or 40%

(2) $400

Explanation:

1)

Unit selling price = Total sales ÷  Number of units

                            = $200,000 ÷  50,000

                            = $4

Unit variable expense = Total variable expenses ÷ number of units

                                    = $120,000 ÷ 50,000

                                    = $2.4

Contribution margin per unit = Selling price per unit - Variable cost per unit

                                               = $4 - $2.4

                                               = $1.6

Now, computing the contribution margin ratio as :

 Contribution margin ratio = Unit Contribution margin ÷ Unit selling price

                                          = $1.6 / $4

                                          = 0.4 or 40%

(2) Change in net operating income:

= Increase in total sales ×   Contribution margin ratio

= $1,000 × 0.4

= $400

Therefore, the net operating income increases by $400.

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tamaranim1 [39]

Answer:

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Explanation:

8 0
3 years ago
When an organization needs employees with good basic skill sets but does not need the applicants in the recruitment pool to have
evablogger [386]

Answer:

Educational institutions

Explanation:

Educational institutions -

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An educational institution are the schools , universities , colleges , etc.

These institutes provides a knowledgeable environment for the people to grab information in various fields .

Hence , from the given scenario of the question ,

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5 0
3 years ago
Suppose that a task in a project has the following time estimates: to optimistic completion time 11 weeks tm most likely complet
vekshin1

Answer:

6 weeks

Explanation:

Optimistic Completion Time  -  11 weeks

Most likely completion time   -   14 weeks

Pessimistic completion time   -   23 weeks

Compute the expected task variance in weeks. Recall that Variance is a measure of dispersion - a measure that shows the distance or spread between or among values of a variable.

Expected Variance is the average of the variance values.

First,

the variance between optimistic CT and most likely CT is (14 - 11) = 3 weeks

Second,

the variance between pessimistic CT and most likely CT is (23 - 14) = 9 weeks

The expected variance is the average of these two values and that's (3 + 9)/2 = 12/2  = 6 weeks

<em>So the expected variance from the mean completion time of 14 weeks is 6 weeks before or 6 weeks after. This accommodates both the optimist and the pessimist. </em>

8 0
2 years ago
Which parts of the electric circuit considered as fuse​
allsm [11]

Answer:

conducts

Explanation:

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Fiesta28 [93]

Answer:

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The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.

For instance, when an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.

Hence, software applications or programs that integrate all business activities across departmental boundaries such as marketing, procurement, customer relationship, sales, etc., are often referred to as enterprise resource planning systems.

7 0
3 years ago
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