All categories

3 years ago

Assume MIX Inc. has sales volume of $1,198,000 for two products with May sales and contribution margin ratios as follows:

Business

1 answer:

lawyer [7]3 years ago

6 0

Answer:

total contribution margin = $579,000

operating income = $277,000

average contribution margin ratio = 48.33%

break even sales volume = $624,870.68

Explanation:

Product A: Sales $466,000; Contribution Margin Ratio 30%

Product B: Sales $732,000; Contribution Margin Ratio 60%

Mix's fixed expenses are $302,000

total contribution margin = ($466,000 x 30%) + ($732,000 x 60%) = $139,800 + $439,200 = $579,000

weighted contribution margin = (466/1198 x 30%) + (732/1198 x 60%) = 11.67% + 36.66% = 48.33%

break even sales volume = $302,000 / 48.33% = $624,870.68

operating income = $579,000 - $302,000 = $277,000

You might be interested in

_____________ include all of the groups and/or individuals affected by a decision, policy, or operation of a firm or individual.

jeka57 [31]

Answer:

Business ethics.

Explanation:

Business ethics is the set of ethical and moral principles that exist in an organization to regulate its activities, actions and decisions that occur in the organization. The set of ethical values is directly determined by the organizational culture, and should be shared with all employees and organizational levels, as it is the business conduct of the company.

When well-established, corporate ethics ensure and motivate positive behavior, enhance a company's reputation and ensure its safety in the marketplace.

7 0

2 years ago

Oaktree Company purchased new equipment and made the following expenditures:

I am Lyosha [343]

Answer:

The Journal entries are as follows:

(1)

Equipment A/c Dr. $71,890

To cash $3,790

To accounts payable $68,100

(To record the purchase of equipment)

Workings:

Equipment value:

= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment

= 64,000 +4,100 + 890 + 2,900

= $71,890

Cash Paid:

= Freight charges for shipment of equipment + Installation of equipment

= 890 + 2,900

= $3,790

Accounts payable = Purchase price + Sales tax

= 64,000 +4,100

= $68,100

(2)

Prepaid Insurance A/c Dr. $1,090

To cash A/c $1,090

(To record any expenditures not capitalized in the purchase of equipment)

7 0

3 years ago

What is the reason for putting yourself on a budget?

choli [55]

Answer:

Explanation:

Helps you gain control of your finances and helps you achieve goals

7 0

1 year ago

Vladimir [108]

Answer:

Oct 1.

Cash $19,900 (debit)

Common Stock $19,900 (credit)

Oct 3.

Office Furniture $2,100 (debit)

Trade Payable $2,100 (credit)

Oct 6.

Trade Receivable: N. Fennig $3,250 (debit)

Revenue $3,250 (credit)

Oct 27.

Trade Payable $900 (debit)

Cash $900 (credit)

Oct 30.

Salary Expense : Administrative Assistant $2,650 (debit)

Cash $2,650 (credit)

Explanation:

In all non-cash entries remember to observe the Accrual or Matching Principle.Thus, transactions must be recorded when they accrue or incur not when they are paid.

7 0

3 years ago

During the past year, a company reported net income of $230,000. Depreciation expense was $22,000. In December the company recei

tamaranim1 [39]

Answer: $259000

Explanation:

Based on the information provided in the question, the amount of cash provided by operating activities that should appear on a statement of cash flows would be:

Net income = $230,000

Add: Depreciation expense = $22,000

Add: Rent = $7000

Total = $259,000

8 0

3 years ago