Answer:
The contribution margin ratio is 35%
Explanation:
The formula for contribution is given below:
Contribution margin = revenue − variable costs.
Contribution margin ratio is given as:
(Sales – variable expenses) ÷ Sales
In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.
Contribution is $7000
contribution margin ratio =$7000/($20*1000)
=0.35 or 35%
The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall
Answer:
$144,000
Explanation:
Calculation to determine net amount paid, assuming FAB wishes to minimize its cost
Net amount: ($.71 + $.01) x 200,000
Net amount = $144,000.
Therefore net amount paid, assuming FAB wishes to minimize its cost is $144000
Answer: The correct answer:
A. Managing monetary policy.
The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity
