With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.
<h3><u>
What is contribution margin?</u></h3>
- A gross or per-unit basis might be used to express the contribution margin.
- It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
- The selling price per unit less the variable cost per unit is the contribution margin.
- The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.
Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.
Number of units sold = 9,000.
Contribution margin per unit = $32.
Expenses = $32 × 9000 = $2,88,000.
Profit = $2,88,000 - $120,000 = $1,68,000.
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Answer:
a. 2
b. 3
c. 4
d. 1
Explanation:
Certified check is the kind of check which is a personal check guaranteed through the bank of the check writer. In short, the bank will verify or tally the signature of account holder and has enough or adequate amount of money.
Cashier check is the kind of check which is guaranteed through a bank and drawn on the bank own funds as well as signed through cashier.
Check A, it is the document which orders the bank to pay a particular amount of money or fund from the person account to the person whose name is mentioned on the check.
Traveler check is the medium of exchange and it is a paper document used in place of the hard currency, which is payable on the demand of the person.
Answer:
False advertising and deceptive business practices. Consumer fraud issues. Predatory lending and financial scams. Issues regarding product safety and defects.
The questions that Maryann is having defines her price objective of the price setting process.
Mary is at the stage where she has to set the prices for her product. In order to do this she has to think about her intended market and also think of her cost of production.
Some of the pricing objectives that she has to think about here are:
- The price that her competitors have set in the market
- Her profit
- Price stability
- How to achieve market share
<u>Complete question:</u>
MaryAnn has just opened a new food-truck business selling homemade crepes. She is confident in the quality of her product and she must now decide on the right price. Should she attract new customers through lower prices or highlight the quality of her products through higher prices? These questions represent which step of the price-setting process?
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Answer:
Total amound paid to shareholder in 3rd year = $1850
Explanation:
Below is the calculation:
Total dividend paid = 1st year divident + 2nd year divident + 3rd year dividend
Total dividend paid = $10000 + 12500 + 14000
Total dividend paid = $36500
Total preferred dividend = (2100 x 100) x 5.5% x 3
Total preferred dividend = $34650
Total amount of dividend paid to shareholder during 3rd year = 36500 - 34650 = $1850
Total amound paid to shareholder in 3rd year = $1850
