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3 years ago

Schister Systems uses the following data in its Cost-Volume-Profit analyses:

Business

2 answers:

pochemuha3 years ago

4 0

Answer:

contribution margin = $237,000

Explanation:

If sales volume increases by 20%, the sales revenue will increase by 20%. Therefore, the new sales revenue is = $395,000 + ($395,000 × 20%) = $395,000 + 79,000 = $474,000

If sales revenue increases, the variable expenses will also increase by 20%. The new variable expense is = $197,500 + ($197,500 × 20%) = $197,500 + 39,500 = $237,000

We know, sales revenue - variable expenses = contribution margin.

If sales volume increases by 20%,

The new contribution margin = $474,000 - $237,000 = $237,000

erastova [34]3 years ago

3 0

Answer:

$237,000

Explanation:

The contribution margin is the difference between the sales and the variable cost. Both are determined by the level of activities and the unit price and variable cost respectively.

If the sales volume increases by 20%, the same effect will happen to the variable cost while the fixed cost may remain constant at this change in the level of activities.

Therefore since

Contribution margin

= Total Sales - Total variable cost

An increase of 20% in sales volume would give a contribution margin

= 1.2($395,000 - $197,500)

= 1.2 × $197,500

= $237,000

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During a recession, a number of workers have their hours reduced by their employers. All else the same, the unemployment rate wi

iogann1982 [59]

Answer:

<h2>The answers in this case are <u>will remain unchanged</u> and <u>will remain unchanged </u> respectively.</h2>

Explanation:

In this case,due to a recession the overall hours of work worked by individual employees or staff are reduced by the employers.
Now,note that it has been mentioned that everything else or every other factor or component in the economy is constant in the economy and thus,unaffected by the recession.
Therefore,it can be reasonably assumed that the unemployment rate will remain the same as there has not been any worker expulsion or layoffs as a result of the recession based on the information provided in the question.
Furthermore,the labor force participation will also presumably remain unchanged as there has been no change in the existing working or employed labor force and/or in the overall population level based on the information presented.

8 0

3 years ago

Suppose the following statistics are available for the economy: CU = $60 billion RES = $100 billion DEP = $1000 billion

sineoko [7]

Answer:

a. 6.625.

b. C = 80 billion, DES = 800 billion and RES = 80 billion.

Explanation:

a) Monetary base = CU + RES = 160 billion. Money supply = CU + DES = 1060 billion. R-D ratio = 100/1000 = 0.10, C-D ratio = 60/1000 = 0.06, money multiplier = (1 + C-D)/(C-D + R-D) = (1 + 0.06)/(0.10 + 0.06) = 6.625.

b) Money multiplier = (1 + 0.10)/(0.10 + 0.10) = 5.5, money supply = monetary base x multiplier or money supply = 160 x 5.5 = 880 billion. CU + DES = 880 billion and C-D = 0.10. Hence C = 80 billion, DES = 800 billion and RES = 80 billion.

5 0

3 years ago

A review of Parson Corporation's accounting records found that at a volume of 144,000 units, the variable and fixed cost per uni

Citrus2011 [14]

Answer:

1,110,000

Explanation:

Parson Corporation's

Volume of unit × Fixed cost per unit

144,000 unit ×2 cost per unit= 288,000

Volume of unit × Variable cost per unit

137,000 unit × 6 cost per unit = 822,000

Therefore

822,000+288,000= 1,110,000

Parson would anticipate 1,110,000 of total cost at a volume of 137,000 units.

8 0

4 years ago

Read 2 more answers

A credit to a liability accounta.indicates an increase in the amount owed to creditors.b.indicates a decrease in the amount owed

lesya692 [45]

Answer:

The correct answer is A. indicates an increase in the amount owed to creditors.

Explanation:

It groups all the accounts that represent the obligations contracted by the economic entity in development of the ordinary course of its activity, payable in money, goods or services.

It includes financial obligations, suppliers, accounts payable, taxes, levies and fees, labor obligations, deferred, other liabilities, estimated liabilities, provisions, bonds and business papers.

The accounts that make up this class will always have credit balances.

The liabilities expressed in foreign currency on the last day of the month or year, will be adjusted based on the exchange rate representative of the market at that date, recording such adjustment as a higher value of the liability charged to the results of the year, except when it should activate.

4 0

4 years ago

Read 2 more answers

Ivanhoe Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Ivanhoe

galina1969 [7]

Answer:

FIFO ending inventory at 30 September : $3101

LIFO ending inventory at 30 September $3016

Average-cost methods ending inventory at 30 September$ 3071.15

FIFO Cost OF Goods Sold $ 11487

LIFO Cost OF Goods Sold $ 11572

Average Cost Method Cost OF Goods Sold $ 11516.85

Explanation:

Working 1

Date Explanation Units Unit Cost Total Cost

Sept. 1 Inventory 12 $106 $ 1,272

Sept. 12 Purchases 45 109 4,905

Sept. 19 Purchases 55 110 6,050

Sept. 26 Purchases 21 111 2,331

Totals 133 $14,558

$ 14588/133 units = $ 109.68 weighted average per unit

Sales 105 snowboards

FIFO ending inventory at 30 September : $3101

28 Snow boards in the ending inventory

21 from Sept. 26 Purchases at $111= $ 2331

7 from Sept. 19 Purchases at $ 110= $ 770

FIFO ending inventory at 30 September $ $3101

LIFO ending inventory at 30 September $3016

12 from 1 Sept. Inventory at $106 = $ 1272

16 from Sept. 12 Purchases at $109= $ 1744

Total Using LIFO= $ 3016

Average-cost methods ending inventory at 30 September$ 3071.15

28 Snow boards in the ending inventory at $ 109.68 weighted average per unit= $ 3071.15

Total Cost of 133 units available for Sale (from Working 1) $14558

Less Ending Inventory FIFO at 30 September : $3101

FIFO Cost OF Goods Sold $ 11487

Total Cost of 133 units available for Sale (from Working 1) $14558

Less Ending Inventory LIFO at 30 September : $3016

LIFO Cost OF Goods Sold $ 11572

Total Cost of 133 units available for Sale (from Working 1) $14558

Less Ending Inventory Average Cost Method at 30 September : $3071.15

Average Cost Method Cost OF Goods Sold $ 11516.85

4 0

3 years ago