If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.
Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.
To calculate the unit selling price use the formula
Unit selling price = contribution margin / contribution margin ratio
Unit selling price = $80 / 50%
Unit selling price = $160
Therefore option d) $160 is the correct answer
The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.
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Answer:
its easier to receive a bachelor's degree there.
Answer:
7.89%
Explanation:
We can find the IRR of Project A and Project B is 9% and 8% respectively
(please see the calculation in excel in attachment)
So if the interest rate below 8% then Project A is more profitable than project B.
You can find NPV of each project follow the decrease in interest rate in the excel attached.
Answer:
I agree with the owner of the company
Explanation:
The overall losses are $40,000 per month and the fixed costs are $30,000 per month.
The company should stop production because the losses are over fixed cost and this tells us that the company is not even able to recover the variable costs and because the variable costs are not at least recovered, there would be no point for the company to continue in the business as it would keep on making a loss and the logic might be wrong regarding sunk costs but the decision must be taken in favour where production should be stopped.
Answer:
$66,909
Explanation:
Calculation for How much must each deposit be (rounded to the nearest $10)?
First step is to calculate the PV using financial y
N= 25
PMT= 200,000
FV= 0
i/y= 9
PV= ?
Hence,
PV= 2,141,322
Now let How much must each deposit be by finding the PMT using financial calculator
N= 15
FV= 2,141,322
PV=0
i/y= 9
PMT= ?
Hence,
PMT=$66,909
Therefore How much must each deposit be is $66,909
