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3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Business

1 answer:

Paladinen [302]3 years ago

5 0

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

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Bob owns a trout farm with monopoly power in North Carolina. Bob's optimal output occurs where marginal revenue _____ marginal c

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Answer and Explanation:

C) equals marginal cost: is upward-sloping

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2 years ago

The new Fore and Aft Marina is to be located on the Ohio River near Madison, Indiana. Assume that Fore and Aft decides to build

Nataly [62]

Po = 0.5385, Lq = 0.0593 boats, Wq = 0.5930 minutes, W = 6.5930 minutes.

<u>Explanation:</u>

The problem is that of Multiple-server Queuing Model.

Number of servers, M = 2.

Arrival rate, $\lambda$ = 6 boats per hour.

Service rate, $\mu$ = 10 boats per hour.

Probability of zero boats in the system, $\mathrm{PO}=1 /\{[(1 / 0 !) \times(6 / 10) 0+(1 / 1 !) \times(6 / 10) 1]+[(6 / 10) 2 /(2 ! \times(1-(6 /(2 \times 10)))]\}$ = 0.5385

<u>Average number of boats waiting in line for service:</u>

Lq = $[\lambda.\mu.( \lambda / \mu )M / {(M – 1)! (M. \mu – \lambda )2}] x P0$

= $[\{6 \times 10 \times(6 / 10) 2\} /\{(2-1) ! \times((2 \times 10)-6) 2\}] \times 0.5385$ = 0.0593 boats.

The average time a boat will spend waiting for service, Wq = 0.0593 divide by 6 = 0.009883 hours = 0.5930 minutes.

The average time a boat will spend at the dock, W = 0.009883 plus (1 divide 10) = 0.109883 hours = 6.5930 minutes.

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3 years ago

What is a future consequence of making minimum payments each month?

Luden [163]

Answer:

A: a longer period in debt

Explanation:

Minimum payments are generally associated with credit card debts. A credit card allows the user to spend on credit. At the end of every month, the credit card company sends the customer a statement detailing the amount they owe. The statement shows the total outstanding amount and the minimum amount payable.

Paying the total outstanding amount clears the total credit card debt helping the customer avoid interest charges. Paying the minimum amount means the customer will have a balance carried forward to the following month, attracting interest charges.

Paying the minimum amount allows the user to continue using the credit card. There will be a balance carried forward and interest charges if only the minimum amount is paid. Due to the high-interest rates that credit cards charge, the debts increase exponentially. The cardholder will require a long time to clear the debts, which means that the interest charges and penalty amounts will be high.

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3 years ago

Countess Corp. is expected to pay an annual dividend of $4.57 on its common stock in one year. The current stock price is $73.59

Serjik [45]

Answer:

The cost of equity is 9.91%

Explanation:

The constant growth model of the DDM is used to calculate the price of the share or the fair value per share based on a constant growth in dividends and the required rate of return which is also known as cost of equity.

Plugging in the available values in the formual we can calculate the cost of equity or the required rate of return.

73.59 = 4.57 / (r - 0.037)

73.59 * (r - 0.037) = 4.57

73.59r - 2.72283 = 4.57

73.59r = 4.57 + 2.72283

r = 7.29283 / 73.59

r = 0.0991 or 9.91%

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3 years ago

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25 is ur answer good ser

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