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ElenaW [278]
3 years ago
5

Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single pro

duct. If the company sells 8,200 units, its total contribution margin should be closest to: Select one: a. $301,000 b. $311,600 c. $319,200 d. $66,674
Business
1 answer:
Dmitrij [34]3 years ago
7 0

Answer:

b. $311,600

Explanation:

For the computation of total contribution margin first we need to find out the contribution margin per unit which is shown below:-

Contribution Margin per Unit = Contribution Margin ÷ Units Sold

= 319,200 ÷ 8,400

= $38

Total Contribution Margin = Contribution Margin per Unit × Units Sold

= $38 × 8,200

= $311,600

Therefore for computing the total contribution margin we simply applied the above formula.

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Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒  D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

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<h3>What is Gift Tax?</h3>

This refers to the federal tax which is levied on a taxpayer who makes a gift of either money or property to someone and is between 18-40%.

Hence, it can be noted that gift taxes are made on any valuable property which is given to another person, regardless of whether the person considers it as a gift.

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malfutka [58]

Answer:

False

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Medicaid is for all-ages (not just senior citizens) and for low-income Americans.

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