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Andru [333]
3 years ago
12

Isabellas, Inc., a local convenience store, sells soft drinks. It sells two large drinks for every small drink. A large drink se

lls for $3.00 with a variable cost of $0.80. A small drink sells for $1.00 with a variable cost of $0.50. The weighted average contribution margin is intermediate calculations and your final answer to the nearest cent.) (Round any Select one: O A. $1.35 per drink B. $4.90 per drink C. $2.20 per drink D. $1.63 per drink
Business
1 answer:
Ghella [55]3 years ago
4 0

Answer:

Option (D) is correct.

Explanation:

Large drink:

Contribution margin per unit = Selling price - Variable cost

                                                = $3.00 - $0.80

                                                = $2.20

Small drink:

Contribution margin per unit = Selling price - Variable cost

                                                = $1.00 - $0.50

                                                = $0.50

Sales mix ratio 2:1  

(2/3 × 100 = 66.67% for large drink

and 1/3 × 100 = 33.33% for small drink

Weighted contribution margin:

= Contribution margin per unit × sales mix percentage

= ($2.20 × 66.67%) + ($0.50 × 33.33%)

= $1.47 + 0.17

= $1.63 or $1.64 (approx)

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hich scenario is an example of an industry in monopolistic competition? Sprint, AT&T, Verizon, and T-Mobile own a large port
Anton [14]

Answer:

Within walking distance from your home, there are a plethora of fast-food restaurants including Koala Express, Cabo Bob's Burritos, Oodles of Noodles, and Hanz's Hearty Hamburgers.

Explanation:

Monopolistic competition refers to a market where there are a large of suppliers that offer differentiated products to a large number of consumers. The restaurant industry are the most common example of monopolistic competition.

The other options are wrong:

Sprint, AT&T, Verizon, and T-Mobile own a large portion of the U.S. cellular market share. OLIGOPOLISTIC MARKET (FEW SUPPLIERS AND MANY CONSUMERS)

Farmers grow navel oranges throughout the United States. PERFECT COMPETITION (MANY SUPPLIERS AND MANY CONSUMERS THAT SUPPLY SIMILAR PRODUCTS)

The local gas company owns all of the gas lines that supply natural gas and heating to the residents in the town of Madison, Wisconsin. MONOPOLY, ONLY ONE SUPPLIER AND MANY CONSUMERS

6 0
3 years ago
Josh’s Manufacturing Company reported fixed manufacturing overhead of $2,500,000, and 2,600,000 total units. The variable manufa
sleet_krkn [62]

Answer:

$0.54

Explanation:

Given: Fixed manufacturing overhead = $2500000.

           Total number of unit= 2600000.

            The variable manufacturing costs= $1.50 per unit.

First finding the cost per unit of manufacturing overhead.

Cost per unit of manufacturing overhead= \frac{Fixed\ manufacturing\ overhead}{Total\ number\ of\ units}

⇒ Cost per unit of manufacturing overhead= \frac{2500000}{2600000}

∴ Cost per unit of manufacturing overhead= $0.96154

Next finding the cost per units using absorption costing.

Cost per unit= Per\ unit\ variable\ manufacturing\ cost - Per\ unit\ cost\ of\ fixed\ manufacturing\ overhead⇒ Cost per unit= \$ 1.50 -\$ 0.96154

∴ Cost per unit= 0.5384 \approx \$0.54

Hence, $0.54 is the cost per unit using absorption costing.

4 0
3 years ago
You just won the lottery and after taxes you have $32,000. You want to have $1,000,000 by the time you are 65, which is 45 years
kogti [31]

Answer:

$20.692.24 must be invested

Explanation:

The amount to be invested today is the present value of $1,000,000 discounted at 9%.

PV  = FV× (1+r)^-n

<em>PV - present value , FV- Future value , r- rate of return, n- number of years</em>

FV =1,000,000, r- 9%, n- 45

PV = 1,000,000 × 1.09^(-45)

PV = 20,692.24

Present Value = $20.692.24

$20.692.24 must be invested out of the $32,000

5 0
3 years ago
4. Which statement best describes the relationship between the war during 1941 and 1944? A. In both years, the Germans are winni
bonufazy [111]

Answer:

B. In 1941 the Germans were winning but in 1944 the Allies had dealt them many losses.

Explanation:

In 1941, the German army was extremely successful and you could say that they were winning since most allied troops had suffered great losses. Germany was trying to expand and gain more territory. By 1944, the American army and the remains of the allied forces had almost defeated the German army and were already fighting in continental Europe.

6 0
2 years ago
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $35,640 and variable exp
tangare [24]

Answer:

Would Decrease

Explanation:

The computation is shown below:

Particulars             C90B          Y45E          Total

Sales (A)                 $35,640      $31,680     $67,320

Variable Expenses (B) $8,910    $12,672     $21,582

Contribution ( C = A-B) $26,730  $19,008    $45,738

Contribution Margin Ratio

( D = C ÷  A)                  75%              60%         67.94%

The break even point would be decreased as for the product C90B the contribution margin ratio is increased as compared with the product Y45E

8 0
2 years ago
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