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irinina [24]
3 years ago
14

7. You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes a cabinetmaker approxima

tely 45 minutes to make one cabinet. Each cabinetmaker works an 8-hour day earning $18 per hour. Each cabinet uses $25 in raw materials. You usually produce cabinets 20 days a month and can employ two cabinetmakers. You estimate that your fixed costs are $5,000 per month. a. What is your contribution margin
Business
1 answer:
Shkiper50 [21]3 years ago
5 0

Answer:

Contribution Margin is 51.875%

Explanation:

Contribution Margin = Contribution/Selling Price × 100

<u>Contribution</u>

Contribution = Selling Price/ unit - Variable Costs/ Unit

Selling Price                                                     $80.00

<em>Less Variable Costs</em>

Raw Materials                                                   ($25.00)

Direct Labour (45mins/60mins×$18)               ($13.50)

Contribution                                                      ($41.50)

<u>Contribution Margin</u>

$41.50/$80.00×100=51.875%

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Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The invest
Mazyrski [523]

Answer:

This question has a missing information. I have found the complete version and pasted it down below;

"Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The investment requires a single payment of <em>$1,500 today</em>. The return on the investment is % A. 4.195 B. 4.729 C. 5.361 D. 5.922 E. 6.961 "

Explanation:

This question requires you to find that discount rate given a single future cashflow. $2,000 is expected 5 years from today, hence the future value. $1,500 payment today is the dollar value today, hence the Present value.

Using a financial calculator, you will key in the following inputs;

Total duration; N = 5

Present value; PV = -1,500 (it's a cash outflow hence negative)

Recurring payment; PMT = 0

Future value; FV = 2,000

then find the rate by keying in CPT I/Y = 5.922%

Therefore, the return on the investment is 5.92%

7 0
3 years ago
Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased con
Dimas [21]

Answer:

1. a. aggregate demand shifts right.

As people are more optimistic, they will consume more in the short term because they feel as though prosperity is coming in the long term.

2. a. both the price level and real GDP rise.

Both of these would rise as Aggregate demand refers to GDP and price level would rise due to the new intersection with the Aggregate supply curve when the AD shifted right.

3. B. The expected price level rises. Bargains are struck for higher wages.

Expected price level will rise because demand is still increasing. Workers will want to benefit from this as well and so will negotiate higher wages.

4. d. short-run aggregate supply left.

As a result of the rise in expected price level and the subsequent negotiation for higher salaries, producers will find the cost of labor to be hire and so will limit production so that they do not spend as much. This will reduce supply thereby shifting the supply curve left.

5. d. the price level is higher and real GDP is the same.

The shift to the left in supply will lead to a higher price but the Real GDP will remain the same because there will be less goods produced so once prices are inflation adjusted, real GDP will be the same.

6. a. the interest rate rises, which causes the opportunity cost of holding money to rise.

If interest rates rise, people will hold less money because they could make a higher return by investing that money.

7. d. decrease, so the money supply decreases.

The money supply decreases because the Fed is taking money out of the banking system by selling bonds as people will pay the Fed for the bonds and the Fed will keep the money.

8 0
2 years ago
Department M had 2,000 units 59% completed in process at the beginning of June, 11,400 units completed during June, and 900 unit
satela [25.4K]

Answer:

Total equivalent units= 10,490

Explanation:

<em>Equivalent Units</em>

<em>To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress</em>

<em>Equivalent Units = Degree of Completion × Units of inventory</em>

<em>Under the first in first out(FIFO) method, to account for the units of work completed the opening inventory are separated and distinguished from the units newly introduced in the period.</em>

<em>Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period</em>

<em>Fully worked = 11,400 -2000 = 9400</em>

<em>The fully worked represents units of inventory started this current period and completed in the same period. </em>

It implies that out of 11,400 completed in the period 2,000 units represent the opening inventory carried forward and the balance is fully worked

Item                                       working             Equivalent units

Opening inventory         (100-59)%×  2000  =   820

Fully worked                    100% ×  9400     =     9400

Closing inventory              30% × 900      =       <u>270</u>

Total equivalent units                               <u>       10490</u>

3 0
3 years ago
memphis company anticipates total sales for april, may, and june of $900,000, $1,000,000, and $1,050,000 respectively. cash sale
mr_godi [17]

The amount of cash received from credit sales during the month of may  $676,000. In general credit sales is equals to total sale multiply by credit sales ratio.

What is credit sales?

Credit sales = Closing debtors + Receipts - Opening debtors.

Credit sales are transactions in which the debt will be paid in full at a later time. In other words, credit sales are transactions in which customers make purchases but do not pay in full, in cash, at the time of the transaction.

A manual for bookkeeping. Recognition of Revenue. Sales are recorded as a credit since the journal entry's opposite, which is typically a debit to either the cash or accounts receivable account, is a credit. In essence, the credit raises shareholders' equity while the debit increases one of the asset accounts.

To know more about credit sales, refer:

brainly.com/question/4974216

#SPJ4

5 0
1 year ago
Selma wants to buy a budget smartphone with good features. However, she cannot decide which one to buy. She asks her coworkers f
nekit [7.7K]

Answer:

The correct answer is letter "A": primary membership group.

Explanation:

Primary membership groups are characterized by being small groups of people who have close relationships with each other because of factors such as <em>childhood friendship, coworker relationships, or because some of the group members are relatives</em>. The members of those groups are typically <em>aware of what is happening with each other, share activities, beliefs or opinions</em>.

6 0
3 years ago
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