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2 years ago

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

sales = $2,500,000

Therefore,

Variable cost = Sales - Contribution margin

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

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A1 Co. has a process costing system. All materials are added when the process is first begun. At the beginning of May, there wer

4vir4ik [10]

Answer:

Total equivalent units of materials =67,000 units

Explanation:

Equivalent unit is computed as follows:

Equivalent units =Degree of completion × units of inventory

Fully worked = 67,000-6,700= 60,300

Closing inventory = 6,700

Item Equivalent unit

Fully worked 100%× 60,300= 60,300 units

Closing inventory = 100%× 6,700= 6,700 units

Total equivalent units 67,000 units

Note that we used 100% as the degree of completion for materials because materials required are always added at the beginning of the process

3 0

3 years ago

The Cozy Company manufactures slippers and sells them at $ 10 a pair. Variable manufacturing cost is $ 5.75 a pair, and allocat

yulyashka [42]

Answer:

(b) $ 43 comma 750 increase

Explanation:

Consider the Incremental Costs and Revenues arising from accepting the Special Order.

Note: Cozy Company has enough idle capacity available to accept a one-time-only special order, therefore the fixed costs are irrelevant for this decision, since order is accepted within the normal operating capacity.

Sales (25,000×$ 7.50) $187,500

Variable manufacturing (25,000× $ 5.75) ($143,750)

Net Income/(loss) $43,750

Conclusion

Therefore, Operating Income would increase by $43,750 as a result of Accepting the Special Order.

7 0

3 years ago

Which accurately describes full-service brokers?

Margaret [11]

Answer: Option C provide advice to buying and selling stocks

Explanation:

A full service broker possesses a license to perform his job. He offers services such as advice, research and planning tips for the clients. Full service broker charges a commission which are generally high as they provide various services.

The service provided by full service broker is customized for the consumers based on their needs. If the client requires a stock broker or financial advisor they are assigned to them each individually. The investment plan and wealth management can be done through full service broker.

8 0

3 years ago

Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama

Kryger [21]

Explanation:

The Journal entry is given below:-

1 January 2020 No Entry

31 December 2020 Compensation Expense Dr, 6,580

To, Paid-In-Capital 6,580

(Being the compensation expense stock-option plan is recorded)

Working Note:-

Compensation Expense

= $7 × 4,700 ÷ 5

= $7 × 940

= $6,580

7 0

2 years ago

Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct mate

DaniilM [7]

The total manufacturing costs for the Job No. 190 is 470,000. To get its direct labor cost, which is the basis of the Henson Company in applying its overhead at the rate of 120%, we need to divide the manufacturing overhead of $180,000 by the rate 120% to get the direct labor cost of 150,000. (180,000/210% = 150,000). To get the total manufacturing cost, you need to add the:direct materials- 140,000direct labor- 150,000manufacturing overhead- 180TOTAL= 470,000- this is the total manufacturing costs (Job No. 190)

8 0

3 years ago