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skad [1K]
3 years ago
7

If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin rati

o is closest to: Select one: a. 29% b. 71% c. 340% d. 23%
Business
1 answer:
Vladimir79 [104]3 years ago
6 0

Answer:

a. 29%

Explanation:

Given that

Contribution margin = $55,900

Sales = $190,000

The computation of contribution margin ratio is shown below:-

Contribution margin ratio = Contribution margin ÷ Sales

= $55,900 ÷ $190,000

= 29%    

Therefore for computing the contribution margin ratio we simply divide sales by contribution margin ratio.

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Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction?
Arlecino [84]

Answer:

A : balance sheet only

Explanation:

In the given question, the truck was purchased on credit and the truck is a fixed asset that comes under the balance sheet only because in the income statement, the expenses and revenues are recorded whereas retained earnings records profit which is left to the company.  

So, it affects the balance sheet only. As balance sheet records all types of assets and all types of liabilities plus shareholder equity.

6 0
4 years ago
A value chain is a set of: a) similarly profitable firms competing against each other in any given industry. b) large firms that
OLEGan [10]

Answer:

c) activities through which a product or service is created and delivered to customers.

Explanation:

A value chain is the entire range of activities that a company undertakes to create a product or a service. These activities include design,  production, marketing and distribution.  A manufacturing company will have its value chain processes start with the procurement of raw materials and end when the product is sold.

Companies will, from time to time, perform value chain analysis.  Value chain analysis involves a detailed examination of all the business processes and procedures. The purpose of the analysis is to improve the efficiency of the value chain. An efficient system of production has cost-saving benefits to the organization.

5 0
3 years ago
A German toy company manufactures its products within U.S. borders. If the
shutvik [7]

Answer:

a

Explanation:

3 0
3 years ago
Read 2 more answers
How do you know you need to become a better test taker? A. You always get nervous before a test., B. You usually do better on ce
Tamiku [17]

Answer:

PREPARING FOR THE TEST. The key to confidence in anything is preparation, and tests are no different. ...

KNOW HOW YOU LEARN. ...

MAKE A PLAN. ...

FIND A BUDDY. ...

REVIEW MATERIAL. ...

REST & EAT. ...

HANDLING ANXIETY. ...

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Explanation:

7 0
3 years ago
Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 15 m
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Answer:

$270m

Explanation:

We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows

Increase in equity =  No Options Granted x Exercise price at the date of grant

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Increase in equity = $270m

       

5 0
3 years ago
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