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kari74 [83]
3 years ago
11

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 340,000 Variable expenses 170,000 Con

tribution margin 170,000 Fixed expenses 108,000 Net operating income $ 62,000 What is total contribution margin if sales volume increases by 30%?
Business
1 answer:
djyliett [7]3 years ago
4 0

Answer:

$204,000

Explanation:

Given that,

Total Sales = $ 340,000

Variable expenses = $170,000

Contribution margin = $170,000

Fixed expenses = $108,000

Net operating income = $ 62,000

Contribution margin ratio:

= Contribution margin ÷ Sales

= $170,000 ÷ $ 340,000

= 0.5 or 50%

If sales volume increases by 30%,

Revised sales:

= Total sales + 20% of Total sales

= $340,000 + (0.2 × $340,000)

= $340,000 + $68,000

= $408,000

Revised contribution margin:

= Revised sales × Contribution margin ratio

= $408,000 × 50%

= $204,000

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The treasury yield curve plots the yields on treasury notes and bonds relative to the ____ of those securities.
Ulleksa [173]

Answer: Maturity

Explanation:

The treasury yield curve plots the yields on treasury notes and bonds relative to the *maturity " of the securities.

The US treasury yield curve compares the yield of short term treasury bills with that of long term treasury bill notes and bonds. In the US the treasury department issues treasury bills for terms less than one year, for terms of two, three, five and ten years. It also issue bond for 20 to 30 years.

8 0
3 years ago
Read 2 more answers
Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this
AlexFokin [52]

Answer:

differential analysis:

                         No further process      Process further         Differential

                                                                                                 amount

Sales revenue            $410,000                $1,213,400             $803,400

Production costs     ($340,000)               ($580,000)           ($240,000)

Operating income       $70,000                  $633,400            $563,400

The company should process further and sell products B and C because its operating income will increase by $563,400.

6 0
3 years ago
Shasta Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an out
Dafna11 [192]

Answer:

D

Explanation:

Unavoidable fixed manufacturing cost is irrelevant as to Shasta Company’s decision to Make or Buy that particular component. It is because, either of their decision, said expense will still incur and it is still form part of their expenses. The only things that will matter to their decision making if that certain expenses will cause changes (decrease in particular) of the potential cost to be incurred by the company that will result to increment their income.

8 0
3 years ago
McGaha Enterprises expects earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate in earnin
Lerok [7]

Answer:

The correct option is B,$29.05

Explanation:

The required rate of return is can be computed using  Miller and Modgiliani CAPM formula below:

Ke=Rf+Beta*Mrp

Ke is the cost of equity which is unknown

Rf is the risk free rate of 3.00%

Mrp is the market risk premium of 5.50%

Beta is 1.2

Ke=3.00%+(1.2*5.50%)

Ke =9.6%

The current price of the common stock is the present value of dividends payment and stock price(terminal value) as shown below discounted with Ke of 9.6%

Year 1 $1.25*(1+25%)=$1.56 *1/(1+9.6%)^1=$1.43

Year 2 $1.56*(1+25%)=$1.95 *1/(1+9.6%)^2=$1.63

Year 3 $1.95*(1+25%)=$2.44 *1/(1+9.6%)^3=$1.85

Year 4  $2.44*(1+25%)=$3.05 *1/(1+9.6%)^4=$2.11

Terminal value=year 4 dividend/ke=$3.05/9.6%=$31.79*1/(1+9.6%)^4=$22.03

Total present values=$1.43 +$1.63+$1.85 +$2.11 +$22.03=$29.05

7 0
4 years ago
A progressive tax is one in A) which the average rate increases as income increases. B ) more taxes are paid as income increases
scoundrel [369]

Answer:

A) which the average rate increases as income increases.

Explanation:

A progressive tax is a tax that increases in tax rate as the taxable amount increases. The tax is termed "progressive" because it refers to the increment or progression of the tax rate from low to high, which by implication means that a taxpayer's average tax rate is less than the person's marginal tax rate.

Another term that describes the progressive nature of income taxes particularly in developed economies like the United states and United Kingdom, is the acronym P.A.Y.E which means Pay As You Earn. Ta payers are expected to pay higher tax rates for higher income brackets

6 0
3 years ago
Read 2 more answers
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