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zhuklara [117]
3 years ago
6

Kelchner Corporation has provided the following contribution format income statement. Assume that the following information is w

ithin the relevant range. Sales (3,000 units) $ 180,000 Variable expenses 108,000 Contribution margin 72,000 Fixed expenses 62,400 Net operating income $ 9,600 The contribution margin ratio is closest to:
Business
1 answer:
Juliette [100K]3 years ago
7 0

Answer:

The contribution margin ratio is closest to 40%

Explanation:

The contribution margin ratio calculates the percentage of sales that will contribute to cover fixed costs and earn a profit. The contribution margin is the difference between the selling price per unit and the variable cost per unit of a product. The contribution margin ratio is the contribution margin per unit represented as a percentage of selling price per unit or total contribution margin represented as a percentage of total sales revenue.

CM Ratio = Total contribution margin / Total Sales revenue

CM ratio = 72000 / 180000  =  0.4 or 40%

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Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a
Irina18 [472]

Answer:

The market value of this firm is $980,744

Explanation:

The computation of the market value is shown below:

= Current value of building + current value of building + market value of inventory + accounts receivable + cash balance - owing balance

= $1,480,000 + $507,000 + $225,000 ($450,000 × 50%) + $237,844 ($245,200 × 98%)  + $10,900 - $1,480,000

= $980,744

We take the market value instead cost value, as question has asked for the market value of the firm

8 0
3 years ago
Whose responsibility is it to keep ladders in good condition?
lord [1]

Answer:

B. Employers

Explanation:

Under the  Occupational Safety and Health Administration (OSHA) laws; it is the employer's responsibility to provide employees with a safe workplace.  To ensure employees are safe, OSHA has issued employers with rules, which include.

  1. Provide a workplace free of any dangers
  2. Examine workplace to make conditions are safe for working
  3. Ensure employees have and are using personal protective equipment. PPE
  4. Make sure employees have and make use of safe tools and equipment. The tools should be properly maintained at all times.
  5. Ensures employees are well trained on safety measures
  6. Use color codes and sign to mark dangers areas.

Based on OSHA regulations, the employer should not only provide the ladder but should also make sure it well maintained.

4 0
3 years ago
Which situation best describes an oligopoly?
kvasek [131]
D - a large airlines work together to set high prices and eliminate
7 0
3 years ago
Which of the following is true about the leveraging effect? Under economic growth conditions, firms with relatively low financia
suter [353]

Answer: Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns.

Explanation:

Under economic growth conditions, firms and organizations with more financial muscle usually have higher expected returns.

This Growth, is as a result of the change in the company's earnings, revenue, GDP or some other sources over a period of time (usually a year) to the next. This growth are usually not affected by inflation.

7 0
4 years ago
Suppose you are comparing the income per capita in the United States and Ghana. You try two approaches. In the first a Ghanaian
Dahasolnce [82]

Answer:

C) The second approach, because it takes into account the relative costs for each country.

Explanation:

Living in poor developing nations is much cheaper than living in very rich developed nations, at least for the vast majority of the population. For example, a small house in Japan or Switzerland costs several hundreds of thousands of dollars, while a similar house in Pakistan or Paraguay will cost only a few teds of thousands of dollars.

The purchasing power parity tries to account for these differences in living expenses using the US dollar as the base currency, and in this case the Ghanaian oedi's value will be adjusted (receive higher value) to compensate for the lower cost of living in Ghana.

8 0
3 years ago
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