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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

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Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for

makkiz [27]

Answer:

B. $323,900.00

Explanation:

Nper = 300 periods

Rate = 8%/12

FV = 0

PMT = $2500

Amount to be Accumulated = PV(Rate,Nper,PMT,FV)

= PV(8%/12,300,2500,0)

= $323911.31

Therefore, The amount to be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years is $323,900 .

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3 years ago

On January 1, 2019, Cullumber Corporation acquired machinery at a cost of $1650000. Cullumber adopted the straight-line method o

Tatiana [17]

Answer:

Explanation:

Since in the given situation there is a depreciation method change i.e. from the straight-line method to double-declining method so there would be no impact restrospectively.

Hence, there would be no cumulative impact as it creates the impact prospectively

So the impact would be zero

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3 years ago

Which step of the dmaic methodology are specific goals set for company achievement?

True [87]

Define as the sigmasix

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3 years ago

Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $300,000 for extrac

Step2247 [10]

Answer:

Santa Fe's cost depletion expense for the current year is $90,000

correct option is b) $90,000

Explanation:

given data

Santa Fe paid = $300,000

Santa Fe recover = 5,000 pounds

Santa Fe extracted = 1,500 pounds

sold = $250,000

to find out

Santa Fe's cost depletion expense for the current year

solution

we get Santa Fe's cost depletion expense for the current year will be here as

cost depletion expense = $\frac{paid}{recover}$ × extracted .......1

put here value we get

cost depletion expense = $\frac{300000}{5000r}$ × 1,500

cost depletion expense = 60 × 1,500

cost depletion expense = 90,000

so Santa Fe's cost depletion expense for the current year is $90,000

correct option is b) $90,000

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3 years ago

Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re

kiruha [24]

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

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3 years ago