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Leto [7]
3 years ago
8

Dairy Days Ice Cream sells ice cream cones for​ $5 per customer. Variable costs are​ $2 per cone. Fixed costs are​ $2100 per mon

th. What is Dairy​ Days' contribution margin​ ratio?
Business
1 answer:
qwelly [4]3 years ago
4 0

Answer:

0.6 or 60%

Explanation:

The contribution margin ratio is calculated by the formula below.

Contribution margin ratio = <u>contribution margin</u>

     sales revenue

= For Dairy D's

Contribution margin per unit = sales - variable expenses

=$5-$2

= $3 per unit

Contribution margin = <u>Contribution  margin per unit</u>

    sale price per unit

   =3/5

   =0.6 or 60%

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Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers
Rus_ich [418]

Answer:

Option (A) is correct.

Explanation:

Given that,

2018:

Accounts receivable (net) = $20

Net sales = $115

Cost of goods sold = $60

Net income = $20

Inventory turnover = 5.22

Return on equity = Return on assets × Equity multiple

                             = 10.3% × 2.36

                             = 24.308% or 24.3%

Therefore, Dowling's return on equity for 2018 is 24.3%.

5 0
3 years ago
When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which res
gogolik [260]

When a business is able to grow by exporting its products around the world, it can frequently attain larger economies of scale, which leads to reduced unit costs.

A company's production unit cost often goes down as it grows. This reduction is the result of economies of scale. By employing the least expensive production techniques, profits will be maximized.

Consumers' prices are lowered as a result of lower cost-per-unit, which increases their real wages overall and makes it easier for them to locate affordable goods.

Businesses from one country offer their goods and services to clients or consumers in another country through the exporting process.

When a company produces more goods at a larger scale while paying less money on average per unit of output, this is a phenomenon known as economies of scale.

Learn more about economies of scale here:

brainly.com/question/23633985

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8 0
1 year ago
Kit-N-Sit, Inc. and Kittysitters, Inc. are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services so th
Cerrena [4.2K]

Answer:

The correct answer ise. do nothing and leave prices unchanged.

Explanation:

It has been observed that many oligopolistic industries exhibit an appreciable degree of price rigidity or stability. In other words, in many oligopolistic industries prices remain sticky or inflexible, that is, there is no tendency for oligopolists to change the price even if economic conditions undergo a change.

There have been many explanations of this price rigidity in the oligopoly and the most popular explanation is the so-called crooked demand curve hypothesis. The crooked demand curve hypothesis was presented independently by Paul M. Sweezy, an American economist, and by Hall and Hitch, Oxford economists.

It is to explain the price and production under oligopoly with product differentiation, that economists often use the hypothesis of the crooked demand curve. This is because when products under oligopoly differ, it is unlikely that when a company increases its price, all customers abandon it because some customers are intimately linked to it due to product differentiation.

As a result, the demand curve facing a company under differentiated oligopoly is not perfectly elastic. On the other hand, under the oligopoly without product differentiation, when a company increases its price, all its customers leave it, so that the demand curve faced by an oligopolist that produces a homogeneous product can be perfectly elastic.

6 0
3 years ago
Treasury bonds paying an 10.00% coupon rate with semiannual payments currently sell at par value. What coupon rate would they ha
andrezito [222]

Answer:

10.25%

Explanation:

The requirement which is Coupon rate can be calculated using EAR formula.

EAR = (1 + APR/n)^n - 1

EAR = (1 + 10.00%/2)^2 - 1

EAR = (1 + 0.1/2)^2 - 1

EAR = (1 + 0.05)^2 - 1

EAR = (1.05)^2 - 1

EAR = 1.1025 - 1

EAR = 0.1025

EAR = 10.25%

10.25% is the coupon rate for annually paying bond.

3 0
3 years ago
You can reduce the cost of auto financing by ____.
Ksju [112]
I think may b not sure c is correct
7 0
3 years ago
Read 2 more answers
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