Answer:
Correct option is C
$892,500
Explanation:
Profit = (CM ratio × Sales) − Fixed expenses
−$33,000 = (0.40 × $810,000) − Fixed expenses
Fixed expenses = (0.40 × $810,000) + $33,000 = $357,000
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $357,000 ÷ 0.40 = $892,500
Answer:
$587,760
Explanation:
Budgeted factory overhead for the year at $645,792 budgeted direct labor hours for the year are 260,400.
If actual direct labor hours for the month of May are 237,000 and the labour hour is used as the measure for determining the overhead cost to be allocated, then
Overhead allocated for May = (237,000/260,400) × $645,792
= $587,760
Well i would say use a conventional loan but that is only for short term loans
Answer:
Variable cost= $1,920,000
Explanation:
Giving the following information:
Sales= $3,000,000
Contribution margin ratio= 0.36
<u>The contribution margin ratio is the dollar remaining after deducting from sales of the variable component.</u> In 1 dollar, the contribution margin is $0.36.
<u>In this case:</u>
Variable cost= sales*(1-Contribution margin ratio)
Variable cost= 3,000,000*0.64
Variable cost= $1,920,000