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Andrews [41]
4 years ago
10

For franklin, inc., sales is $1,500,000, fixed expenses are $450,000, and the contribution margin ratio is 36%. what are the tot

al variable expenses?
Business
1 answer:
KengaRu [80]4 years ago
6 0
The answer is "<span>$960,000".

This is how we calculate this;
</span><span>sales = $1,500,000
</span><span>fixed expenses = $450,000
</span><span>contribution margin ratio = 36% = 36/100 = 0.36
</span>total variable expenses = <span>($1,500,000) (1 – 0.36)
= (1,500,000)(0.64)
= $960,000</span>
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In a job order cost system, it would be correct in recording the purchase of raw materials to debit Finished Goods Inventory. Ra
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In a job order cost system, it would be correct in recording the purchase of raw materials to debit

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3 years ago
North Around, Inc. stock is expected to return 22 percent in a boom, 13 percent in a normal economy, and −15 percent in a recess
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Answer:

4.53%

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Data provided in the question:

Expected return = ∑ (Return × probability)

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Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))

= 12.98%

Now,

Probability       Return        Probability × (Return-Expected Return)²

0.06                  22                   0.06 × (22% - 12.98%)² = 4.8816

0.92                  13                    0.92 × (13% - 12.98%)² = 0.000368

0.02                  -15                   0.02 × (-15% - 12.98%)² = 5.657608

========================================================

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Standard deviation = \sqrt{\frac{\text{Total probability}\times(\text{Return-Expected Return})^2}{\text{Total probability}}

= √(20.5396)

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