1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Damm [24]
3 years ago
8

Variable Cost Ratio, Contribution Margin Ratio

Business
1 answer:
xenn [34]3 years ago
4 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. The unit variable cost is $45. Fixed factory overhead is $20,000 and fixed selling and administrative expense is $29,500.

To calculate the variable cost ratio, we need to use the following formula:

Variable cost ratio= unitary variable cost / selling price

Variable cost ratio= 45/75= 0.6

The contribution margin rate is the difference between the contribution margin and the selling price:

CM ratio= Contribution margin / selling price

CM ratio= (75 - 45)/ 75= 0.4

You might be interested in
Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll
Elan Coil [88]

Answer:

Cost of land= $1,124,100

Explanation:

<em>According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use. </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.

However, remember that land is not depreciated because it has an infinite life span.

So using the historical cost principle the cost of the land

Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300=  1,124,100.00

Cost of land= $1,124,100

6 0
3 years ago
Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology.
Vikki [24]

Answer:

Appropriate Terminology

a. If Kevin's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions supplied, you would advise your coworker to construct -------- using the data provided.

bar chart or histogram

b. However, if Kevin's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that a -------- would be more appropriate.

table

Explanation:

A bar chart or graph represents categorical data with rectangular bars.  It can be used to visualize data distributions, compare data groups, and to track periodic changes in data.  Tables are versatile organization tools that can communicate information with or without the use of other graphical tools.

4 0
2 years ago
Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 bilion and $336 bilion, respectively. (In p
Alina [70]

Answer:

V = 3.5  (1 dollar circulates 3.5 times in a year)

In short term – Reduction of aggregate demand and real output

In long term – reduction of wages and increase of real output of firms

Nominal GDP will fall by $20 bilion

Explanation:

Equation of monetisation =  

Total money in circulation = Total money demanded/total output

Money Supply * Money Velocity = Price Level * GDP

V = PY/M  

Substituting the given values, we get –  

V = 336/96  

V = 3.5  

This indicates 1 dollar circulates 3.5 times in a year

In short term – Reduction of aggregate demand and real output

In long term – reduction of wages and increase of real output of firms

Nominal GDP will fall by $20 bilion

7 0
3 years ago
Assume the marginal propensity to consume is 0. 8. How will a decrease in taxes of $100 billion and a decrease in government spe
lisabon 2012 [21]

Aggregate demand will decrease by $900 billion.

The overall demand for finished goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics. Effective demand is a common name for it, however other times this term is used to make a distinction. This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point. The aggregate demand is made up of investment, corporate and governmental expenditures, consumer spending, and net exports. Real output is represented on the horizontal axis and the price level is plotted on the vertical axis to represent the aggregate demand curve. Although it is presumed to be downward sloping, the Sonnenschein-Mantel-Debreu findings demonstrate that the curve's slope

To know more about aggregate demand refer to brainly.com/question/24777291

#SPJ4

3 0
1 year ago
If the French bank Société Générale reported its 2019 net income was 23,561 million euros and its operating expenses totaled 16,
VashaNatasha [74]

Answer:

39,577 million euros

Explanation:

Calculation to determine the what was its gross profit

Using this formula

Gross profit=Net income+Operating expenses

Let plug in the formula

Gross profit=23,561 million +16,016 million

Gross profit=39,577 million euros

Therefore gross profit will be 39,577 million euros

3 0
3 years ago
Other questions:
  • In EduTech, a software company, the views and suggestions of managers are considered unquestionable and employees never go again
    15·1 answer
  • Lori, a self-employed pediatrician, currently earns $200,000 annually. Lori has been able to save 15%of her annual Schedule C ne
    10·1 answer
  • The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
    9·1 answer
  • Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350.
    13·1 answer
  • Which of the following mortgages would you prefer to hold if you were a lender and you expected inflation of uncertain magnitude
    10·1 answer
  • Consider the futures contract written on the S&amp;P 500 index and maturing in one year. The interest rate is 5.8%, and the futu
    14·1 answer
  • Post Company lends Blue Company $40,000 on April 1, accepting a 4 month, 4.5% interest note. Post Company prepares financial sta
    14·1 answer
  • Which part or phrase in the passage describes a method of primary market research that Jeremy might choose?
    13·2 answers
  • Complete this analogy: The computer is to hardware as a productivity program is to _____.
    5·1 answer
  • The production function for laser eye surgery is given by Q = 20K0.5L0.5, where Q is the number of laser eye surgeries performed
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!