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nasty-shy [4]
2 years ago
6

If a company had a contribution margin of $1,000,000 and a contribution margin ratio of 40%, total variable costs must have been

Business
1 answer:
dolphi86 [110]2 years ago
8 0

Answer:

$1,500,000

Explanation:

Data provided in the question:

contribution margin of the company = $1,000,000

Contribution margin ratio = 40%

Now,

The sales = (contribution margin) / (Contribution margin ratio)

thus,

Sales = \frac{1,000,000}{0.40}

or

sales = $2,500,000

Therefore,

Variable cost = Sales - Contribution margin

or

Variable cost = $2,500,000 - $1,000,000 = $1,500,000

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In the context of the 5S principles, _____ means to keep a process going through training, communication, and organizational str
alina1380 [7]

In the context of the 5S principles, <u>sustain </u>means to keep a process going through training, communication, and organizational structures.

<h3>What is 5S principles? </h3>

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5 0
2 years ago
Candy crunchers wants to see if their new candy is enjoyed more by high school or middle school students. they decide to visit o
lukranit [14]
The answer would be: all students who attend one middle school and one high school in Miami, FL. As the company, Candy Crunchers, only took surveys from one high school and one middle school only, that would be the sample of the population.
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3 years ago
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Robo Hot Inc., is a company that markets electric heaters to hospitals. Mr. Heatmizer, it's CEO, would ike to reduce its invento
Kruka [31]

Answer:

Expected number of orders=31.6 orders per year

Explanation:

<em>The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).</em>

<em>The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.</em>

It is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units

Number of orders = Annual Demand/EOQ

                              = 100,000/3,162.27= 31.62 orders

Expected number of orders=31.6 orders per year

7 0
2 years ago
From the information given below construct a cash budget for five months period starting form May 20X1 till September. MONTH AND
Alenkinab [10]

Answer:

Cash Surplus  May   $83,300   June    $  61,600   July    $33,000  

Aug  $25,500        Sept $  3650

Explanation:

MONTH AND YEAR          PROJECTED SALES        FIRST MONTH      

                                                                                   COLLECTIONS (80%)

April 20X1                               $ 140,000                   112,000

May 20X1                                 130,000                      104,000

June 20X1                                90,000                        72,000

July 20X1                                  65,000                         52,000

August 20X1                            84,000                         67,200

September 20X1                      95,000                          76,000

October 20X1                          160,000                         128,000  

November 20X1                      200,000                        160,000

December 20X1                       240,000                       192,000

January 20X2                            190,000                      152,000  

<u><em>First we find the monthly cash collections 80 % in the month of sales , 10% in the second month , 5% in the third and 5 % in the fourth . We have summed them up in the following table.</em></u>

Sales Collections

                          MAY        JUNE      JULY        AUGUST         SEPT

Particulars

1st Month         104,000     72,000     52,000   67,000      76,000

Collections

2nd Month      14,000       13,000       9000      6500         8400

3rd Month                         7000         6500       4500         3250

<u>4th Month                                            7000      6500         4500</u>

Total

Collections       118,000      92,000    74,500    84,500      92,150

<u><em>Now we prepare the cash budget deducting payments from collections and maintaining beginning and ending balance.</em></u>

<u>Cash Budget</u>

                    <u>  MAY        JUNE      JULY        AUGUST         SEPT</u>

<em>Particulars</em>

Opening          10,000     10,000     10,000      10,000        10,000

Add Total

Collections       118,000      92,000    74,500    84,500      92,150

Less Closing    10,000        10,000       10,000      10,000      10,000

<u>Less Payments34,700        30,400     41,500      59,000       88,500 </u>

<u> Cash Surplus    83,300        61,600     33,000   25,500       3650</u>

<u />

4 0
2 years ago
Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per
Vladimir [108]

Answer and Explanation:

As per the data given in the question,

Flexible manufacturing overhead budget

Activity level :

Machine hours 2,000 hours    3,000 hours     4,000 hours

Variable costs :

Indirect labor $5     $10,000     $15,000           $20,000

Indirect material $2.50   $5,000  $7,500         $10,000

Maintenance $0.80  $1,600     $2,400             $3,200

Utilities $0.30   $600                $900               $1,200

Total variable cost $22,600     $25,800          $34,400

Fixed costs :

Supervision             $800        $800               $800

Insurance                $200         $200              $200

Property taxes        $300         $300              $300

Depreciation           $900        $900              $900

Total Fixed cost      $2,200     $2,200          $2,200

Total Cost               $24,800   $28,000        $36,600

3 0
2 years ago
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