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Sidana [21]
4 years ago
10

1. ABC Inc. showed the following operating budget for the next year. Sales $2,100,000 Fixed cost $650,000 Total variable cost 35

0,000 Total cost 1,000,000 Net Income $1,100,000 Answer the following questions: Keep 8 decimal places for the contribution rate. (a) Calculate the total contribution margin and contribution rate (CR). Hint: For CR equation, consider multiplying both numerator and denominator by X (volume). (b) How much sales revenue does ABC Inc. need to generate to break-even? (c) Suppose the company decides to set a price of $150 for a unit of product that it sells. What is the break-even volume in units?
Business
1 answer:
Bezzdna [24]4 years ago
8 0

Solution:

(a) Total contribution margin = Sales - Total variable cost

= 1,320,000-111,000

= $1,209,000

Contribution Rate = Contribution margin / Sales

= 1,209,000/1,320,000

= 91.59090909%

(b) Break even sales = Fixed costs / Contribution rate

= 567,000/91.59090909%

= $619,057

(c) Break even volume in units = Break even / Selling price per unit

= 619,057/125

= 4,953 ( Rounded to near whole number)

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Answer:

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Explanation:

Partners must be included in the planning process and their opinions must be sought in mission assignment. It is improper for the opinions of other contributing nations to be neglected during the planning process of a mission. As stated in the question,  the commander must consider that national honor and prestige may be as important to a contributing nation as combat capability.

4 0
3 years ago
Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected retur
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Answer: 28%

Explanation:

First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:

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5 0
3 years ago
Bailey Company incurred the following costs in manufacturing desk calculators: Direct materials $18 Indirect materials (variable
Romashka-Z-Leto [24]

Answer:

$84

Explanation:

Calculation to determine the inventory cost per unit using absorption costing

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Therefore the inventory cost per unit using absorption costing is $84

3 0
3 years ago
When Greenbelt Construction company began building houses in a large subdivision with many other builders, the company priced it
r-ruslan [8.4K]

Answer:

"A"

Competitor-Based

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3 years ago
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporati
DanielleElmas [232]

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Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing under the minimum-contacts test.

Minimum contacts applies to situations whereby a court in one state can assert its personal jurisdiction over another defendant which isn't in that same state but is in another state.

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