All categories

3 years ago

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

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cas

Triss [41]

Answer:

The correct answer is $1,800,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Net working Capital = Current Assets - Current Liabilities

Where,

Current Assets = cash and marketable securities + accounts receivable + inventory

Current Assets = $400,000 + $1,200,000 + $2,100,000 = $3,700,000

And Current Liabilities = accrued wages and taxes + accounts payable + notes payable

Current Liabilities = $500,000 + $800,000 + $600,000 = $1,900,000

So, Net Working Capital = $3,700,000 - $1,900,000

= $1,800,000

8 0

3 years ago

As the labor market became more competitive in the later 19th century, employers began to offer all the following except

iren2701 [21]

Option A should be the best answer for above question. All other choices listed are already offered by companies nowadays. Pensions are only given companies as payment to their contributions to their previous company.

3 0

3 years ago

In a market system, self-interest is the motivating force that:A. Makes individuals unwilling to deliver anything of value to ot

Inessa [10]

Answer:

The correct answer is D. Coordinates and creates consistency in the operations of various parts of the economy.

Explanation:

The market economy system has advantages and disadvantages in its operation that should be reviewed before starting the study of the centralized economy system. The market economy system works with a high degree of efficiency and economic freedom. Economic agents, both companies and individuals, act guided by their own interest and freely. The price system encourages producers to manufacture the goods that the public wants. Price movements that act as signals in a correct way, while trying to reach their own interest.

7 0

3 years ago

Kimi is writing training objectives that describe what the employee is expected to do and the conditions under which the employe

maria [59]

Answer:

a description of the acceptable quality or level of performance

Explanation:

Kimi includes the description of the quality which is acceptable because she gives training to employees. So, she makes sure that every employee learns in a better manner for the benefit of the organization. Therefore Kimi expects from every employee the acceptable quality should be there after the training. On the other hand, Kimi wants the level of performance should be good because Kimi want that every work should be done in an effective, efficient and systematic manner.

6 0

3 years ago

Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Manuel purchas

Zina [86]

Answer:

The correct answers are:

A) Investment

B) Saving

C) Investment

D) Saving

Explanation:

In macroeconomics, investments are acquisitions spent whether on durable goods, services or both. While savings are the assets accrued after a part of it has been spent on primary goods, services o both. In the two cases, future benefits are expected.

In that sense:

A) Manuel purchases a new condominium in Miami.

This is an investment since the property is considered a durable good.

B) Poornima purchases stock in Goohoo, an information technology company.

This is a saving since stocks are intangibles.

C) Kate purchases new ovens for her cupcake-baking business.

This is an investment. The new ovens are durable goods.

D) Hubert buys a government bond.

This is a saving since bonds as well as stocks are intangibles.

6 0

4 years ago