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LiRa [457]
3 years ago
11

Gabby Company sells a product for $ 100 per unit. Variable costs are $ 60 per​ unit, and fixed costs are $ 2 comma 500 per month

. The company expects to sell 600 units in September. Calculate the contribution margin per​ unit, in​ total, and as a ratio.
Business
1 answer:
Ann [662]3 years ago
4 0

Answer:

(a) $40

(b) $24,000

(c) 40%

Explanation:

Given that,

Selling price = $100 per unit

Variable costs = $60 per​ unit

Fixed costs = $2,500 per month

Contribution margin per unit:

= Selling price - Variable costs

= $100 per unit - $60 per​ unit

= $40

Total Contribution margin:

= Contribution margin per unit × No. of units sold

= $40 × 600 units

= $24,000

Contribution margin ratio:

= (Selling price - Variable costs) ÷ Selling price

= ($100 per unit - $60 per​ unit) ÷ $100 per unit

= 0.4 or 40 %

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A stock will have a loss of 13.6 percent in a recession, a return of 12.3 percent in a normal economy, and a return of 27 percen
SpyIntel [72]

Answer:

Standard deviation =21.34

Explanation:

<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .</em>

<em>Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios</em>

Expected return (r) = (13.6% × 0.33 ) +  (12.3% × 0.36)  + (27%× 0.31)=17.3%

Outcome           R       (R- r )^2           P×(R- r )^2

Recession        13.6       13.6                 4.5

Normal         12.3         24.9                  8.9

Boom           27%        94.4              <u>     29.3 </u>

Total                                                <u>   42.7 </u>

Standard deviation = √42.7 = 21.34

Standard deviation =21.34

3 0
3 years ago
On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity.
babymother [125]

Answer and Explanation:

The journal entries are shown below:

a. Note receivable Dr $3,800,000

        To Cash $3,800,000

(Being the acceptance of the note is recorded)

For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities

b. Interest receivable Dr  $38,000

                 To Interest revenue  $38,000

(Being the interest revenue is recorded)

For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue

The computation is shown below:

= $3,800,000 × 6% × 2 months ÷ 12 months

= $38,000

,

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Explanation:

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Answer:

A fixed asset register is a detailed list of all fixed assets which are owned by a business. Its main purpose is to enable an organization to accurately record and maintain both financial and non-financial information pertaining to each asset and to easily identify and verify an asset when required.

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