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Elenna [48]
3 years ago
11

Sillytime Park competes with Splash World by providing a variety of rides. Sillytime sells tickets at $ 60 per person as aâ one-

day entrance fee. Variable costs are $ 24 perâ person, and fixed costs are $ 226 comma 800 per month. Compute Sillytime âPark's contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Sillytime Park needs to break even
Business
1 answer:
horsena [70]3 years ago
3 0

Answer:

BEP 378,000

Explanation:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

60 - 24 = 36 contribution margin

every units contribution $36 dollars

36 / 60 = 0.6 CM ratio

each dollar of sale generate 60 cents of contribution

226,800 fixed cost / 0.6 CMR = 378,000 BEP  in dollars

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Bezzdna [24]

Answer:

What role do primary financial markets play in our economy?

The key function of the primary market is to facilitate capital growth by enabling individuals to convert savings into investments. It facilitates companies to issue new stocks to raise money directly from households for business expansion or to meet financial obligations

What role do secondary markets fill?

Secondary markets include option markets and deal markets in which ownership of securities is transferred. Investors create auction markets, such as the New York Stock Exchange, by congregating in one physical area to announce bids and ask prices and to trade and sell stock.

Describe the relationship that exists between financial institutions and financial markets and suggest a method in which this relationship can run more smoothly.

Financial instruments are those instruments that allow you to take an exposure to a specific type of risk, or simply to invest your money! Financial instruments are bought and sold by all the financial institution with different goals (to get a fixed return, to speculate, to provide short term and long term funding, to achieve a specific rate of return, to fund themselves, to buy or sell for a client…) and in different ways.

Financial markets are the places where Financial Instruments are bought and sold by Financial Institutions.

Explanation:

What role do primary financial markets play in our economy?

The key function of the primary market is to facilitate capital growth by enabling individuals to convert savings into investments. It facilitates companies to issue new stocks to raise money directly from households for business expansion or to meet financial obligations

What role do secondary markets fill?

Secondary markets include option markets and deal markets in which ownership of securities is transferred. Investors create auction markets, such as the New York Stock Exchange, by congregating in one physical area to announce bids and ask prices and to trade and sell stock.

Describe the relationship that exists between financial institutions and financial markets and suggest a method in which this relationship can run more smoothly.

Financial instruments are those instruments that allow you to take an exposure to a specific type of risk, or simply to invest your money! Financial instruments are bought and sold by all the financial institution with different goals (to get a fixed return, to speculate, to provide short term and long term funding, to achieve a specific rate of return, to fund themselves, to buy or sell for a client…) and in different ways.

Financial markets are the places where Financial Instruments are bought and sold by Financial Institutions.

7 0
3 years ago
Which of the following taxes are paid by the employee and the employer? a.FUTA b.Federal withholding taxes c.SUTA d.FICA
vlabodo [156]

Answer:

The correct answer is letter "D": FICA.

Explanation:

The FICA (<em>Federal Insurance Contributions Act</em>) is a U.S. law that requires a paycheck deduction to be paid to <em>Social Security</em> and <em>Medicare</em>. Employers and employees share half the payment unless an individual is self-employed meaning the full amount must be covered by that person.

8 0
3 years ago
Why the finance department is so important to a business?
Genrish500 [490]
The finance department keeps track of all accounts and deposits and is responsible for keeping the company from going bankrupt
7 0
3 years ago
Read 2 more answers
After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing throu
Len [333]

Answer:

a) Total Interest Paid in 24 months is $1680

b) Total Cost of the car is $12180

c) Monthly Payment is $420

d) Annual Percentage Rate  is 10.47%

Explanation:

(a) Loan Amount = $8400

Interest Rate = 10%

Monthly Interest = 8400 x (10%/12)

                            = $70

Total Interest Paid in 24 months = 24 x 70

                                                     = $1680

(b) Total Cost of the car = Loan Amount + Interest Paid + Down payment

                                       = 8400 + 1680 + 2100

                                        = $12180

(c) Monthly Principal Payment = 8400/24

                                                  = $350

Monthly Payment = Monthly Interest Payment + Monthly Principal Payment

                              = 70 + 35

                              = $420

(d) Annual Percentage Rate = (1+ 0.10/12)12 - 1

                                              = 0.1047

                                               = 10.47%

7 0
3 years ago
Mrs. Smith operates a business in a competitive market. The current market price is $7.50. At her profit-maximizing level of pro
adelina 88 [10]

Answer:

Option (D) is correct.

Explanation:

Given that,

Current market price = $7.50

Average variable cost = $8.00

Average total cost = $8.25

It can be seen from the above information that current market price is less than the average variable cost, i.e, $7.50 < $8.00.

Mrs. Smith should shut down its production in the short run as well as in the long run until the point where current market price is greater than or equal to average variable cost.

4 0
3 years ago
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