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san4es73 [151]
3 years ago
15

Ralph Lauren sells suits and ties. Suits sell for $1000 each, and cost $300 in variable expenses to make each. Ties sell for $10

0, and cost $75 in variable expenses to make. Ralph’s fixed expenses are $60,000. If 90 percent of his revenues are from suits, what is Ralph’s weighted average contribution margin ratio?
Business
1 answer:
lina2011 [118]3 years ago
5 0

Answer:

Weighted average contribution margin ratio= $632.5

Explanation:

Giving the following information:

Suits:

Selling price= $1,000

Unitary variable cost= $300

Sales participation= 90%

Ties:

Selling price=  $100

Unitary variable cost= $75

Sales participation= 10%

To calculate the weighted contribution ratio, we need to use the following formula:

Weighted average contribution margin ratio= weighted average selling price - weighted average unitary varialble cost

weighted average selling price= (1,000*0.9) + (100*0.1)= 910

weighted average unitary varialble cost= (300*0.9) + (75*0.1)= 277.5

Weighted average contribution margin ratio= 910 - 277.5= $632.5

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Answer:

C) Central banks finance large government budget deficits

Explanation:

Hyperinflation is when general price level rise at accelerating high rates. This leads to loss in real value of currency, people tend to substitute it by other stable currency holdings.

An important cause of Hyperinflation is Deficit Financing. This means government generating funds, by bank issuing (printing) new currency. It is done to cover the deficit, the excess of government expenses over its revenues.

Increase in currency money supply, by borrowing from central bank - raises Aggregate Demand & general price level at a very rapid rate, i.e Hyperinflation

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3 years ago
Stormy Corporation has two service departments (S1 and S2) and two production departments (P1 and P2), and uses the step-down me
Marianna [84]

Answer:

E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.

Explanation:

As S1 gives more service, So it would be allocated first

Here

S1 cost of $280,000 would be allocated to S2 P1 and P2 based on number  of employees

The total employees in S2 P1 and P2 is

= 20 + 50 + 70

= 140

And, the Cost to be allocated per employee is

= $280,000 ÷ 140

= $2,000

Now cost received by S2 is

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= $40000

And, the cost received by P1 is

= $2,000 × 50

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And, the cost received by P2 is

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= $140,000

Now

S2 contains total cost of

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= $390,000

So this would be allocated to P1 and P2 as S1 has already allocated  

Hence, option D is correct

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3 years ago
Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a bat
cestrela7 [59]

Answer:

Explanation:

1. Calculate the efficiency variance for variable overhead setup costs.

This will be calculated as:

= Standard Hours - Actual Hours) × Standard rate

= (15000/225 × 5.25 - 15000/250 × 5) × 38

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= 50 × 38

= 1900 Favourable

2) Calculate the rate variance for variable overhead setup costs.

This will be:

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= (38-40) × (15000/250 × 5)

= -2 × 300

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3) Calculate the flexible-budget spending variance for variable overhead setup costs.

This will be the difference between the standard cost and the actual cost. This will be:

= (15000/225×5.25 ×38) - (15000/250×5 ×40)

= 13300 - 12000

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4) Calculate the spending variance for fixed setup overhead costs.

what formular did you use.

This will be:

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Answer:

False

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