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german
2 years ago
11

If the variable cost per unit goes down, a. Contribution margin increases and Break-even point decreases. b. Contribution margin

decreases and Break-even point increases. c. Total variable cost increases and Break-even point decreases. d. Contribution margin increases and Break-even point increases. e. Contribution margin and Break-even point remains unchanged.
Business
1 answer:
sergejj [24]2 years ago
4 0

Answer:

A. Contribution margin increases and Break-even point decreases

Explanation:

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Sound is the most important part of verbal communication
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2 years ago
Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

  • D1 is the expected dividend for the next period or D0 * (1+g)
  • r is the required rate of return
  • g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048)  /  (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

5 0
3 years ago
Why would someone choose to start a franchise business?
Rom4ik [11]

Answer:

The franchise organization model offers the franchisee the ability to grow under a common brand and share in the benefits of a larger group of business owners. ... Training from successful business operators. A lower risk of failure and/or loss of investments than if you were to start your own business from scratch.

6 0
3 years ago
Sapphire sells two products: ordinary laptops and premium laptops. Ordinary laptops are priced at $650 each and premium laptops
stira [4]

Answer:

The break-even point in units for ordinary laptops is 2,100 units.

Explanation:

Contribution Margin per unit (ordinary) = Selling Price - Variable cost

                                                                 = $650 -$605

                                                                 = $45

Contribution Margin per unit (premium) = Selling Price - Variable cost                                        = $1,150 -$1,090

= $60

$45* 4x + $60x = Fixed Costs = $126,000

= 180x +60x = $126,000

=240x =$126,000 = 525 units

Ordinary computers = 4x

                                  = 4*525

                                  = 2,100 units

Therefore, The break-even point in units for ordinary laptops is 2,100 units.

6 0
3 years ago
Thornton, Inc., had taxable income of $128,267 for the year. The company's marginal tax rate was 35 percent and its average tax
valentinak56 [21]

Answer:

$30784.08

Explanation:

Taxable income can be refer to as the amount of income used to calculate how much tax an  organisation owes to the government in a particular tax year.

Thornton Inc. had taxable income of $128,267 for the year

The company's marginal tax rate is 35 percent

The company's average tax rate is 24 percent

To know how much did the company have to pay in taxes for the year, we multiply the Taxable income by the Company Average tax rate for the year.

=$128,267 * 24%

=$128,267 * 0.24

=$30784.08

Thornton Inc will pay $30784.08 for the year.

8 0
3 years ago
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