Answer:
Contribution margin per unit = $250
Contribution margin ratio = 55.56%
Explanation:
The computations are shown below:
Contribution margin per unit = Sale price per unit - variable cost per unit
= $450 - $200
= $250
Contribution margin ratio would be
= (Contribution margin per unit) ÷ (Sale price per unit) × 100
= ($250) ÷ ($450) × 100
= 55.56%
And, the contribution margin income statement for may month is presented below:
Sales (225 bikes × $450) $101,250
Less: Variable cost (225 bikes × $200) ($45,000)
Contribution margin $56,250
Less: Fixed expenses per month ($40,000)
Net income $16,250
Answer:
Equipment, $46,000, and Land, $21,000 including Accumulated Depreciation, $18,000.
This amounts to $49,000.
Explanation:
The long term asset are also known as the non current assets.
These are assets that will not be used up in a year. It means that the benefits that will accrue to the entity as a result of ownership and control of these assets will be for more than a year. Examples are fixed asset, intangible assets etc
Archer's long term assets are Equipment, $46,000, and Land, $21,000 including Accumulated Depreciation, $18,000.
This amounts to
= $46,000 + $21,000 - $18,000
= $49,000
Answer:
Which of the following are ways in which to calculate the benefit of selecting one alternative over another?
-An analysis that just looks at the relevant costs/benefits and identifies those that are differential
-the difference between the net operating income for the two alternatives
-an analysis that looks at all costs and benefits and identifies those that are differential
Explanation:
The beginning of wisdom in using accounting for decision-making is a clear understanding that the relevant costs and revenues are those which as between the alternatives being considered are expected to be different in the future.
Answer:
$5.25
Explanation:
A preferred stock is sold at $54.20
The market return is 9.68%
Therefore the dividend amount can be calculated as follows
= 54.20 × 9.68/100
= 54.20 × 0.0968
= $5.25
Hence the dividend amount is $5.25
<span>In theory, Bill can deduct $36000 from his 2016 taxes. However, there are often caps on deductions, so there is really not enough information.</span>
