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marin [14]
3 years ago
12

Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar

e $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The contribution margin per unit is:Multiple Choice$22$16$7$17
Business
1 answer:
andrey2020 [161]3 years ago
3 0

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 =  $16

Contribution margin = $16

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Answer:

Explanation:

Dividends through year 1 to 5:

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D2 = 2.15*(1+0.30)^2 = 3.63

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D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58

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PV (D5) = 12.86 * 0.59208 = 7.62

Total of all PV's = 22.69

4 0
3 years ago
For resources to be able to meet your needs, it must have attribute known as
Bogdan [553]
Not all resources of a given type are identical: Customers differ in size and profitability, staff differ in experience, and so on. This chapter will show you the following:

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3 years ago
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Asset
Firdavs [7]

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zubka84 [21]

Answer: D) poor planning.

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3 0
3 years ago
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Fiesta28 [93]

Answer: $13.25

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