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tia_tia [17]
3 years ago
11

A cement manufacturer has supplied the following data: Tons of cement produced and sold 263,000 Sales revenue $ 1,104,600 Variab

le manufacturing expense $ 432,000 Fixed manufacturing expense $ 229,000 Variable selling and administrative expense $ 94,000 Fixed selling and administrative expense $ 219,000 Net operating income $ 130,600 What is the company's unit contribution margin?
Business
1 answer:
Ymorist [56]3 years ago
8 0

Answer:

$2.2 per unit

Explanation:

With regards to the above and to compute the company's unit contribution margin, we need to first calculate the total contribution margin

Total contribution margin

= Sales revenue - Variable manufacturing expenses - Variable selling and administrative expenses

= $1,104,600 - $432,000 - $94,000

= $578,600

Therefore, the company's unit contribution margin

= Total contribution margin ÷ Number of units produced and sold

= $578,000 ÷ 263,000

= $2.2 per unit

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Answer:

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Explanation:

Retained Earning is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.

Balance of Retained Earning = $500,000

Dividend Payment = 25% x $500,000 = $125,000

Additions to Retained Earning = $500,000 - $125,000 = $375,000

New balance of Retained Earning = $2,000,000 + $375,000 = $2,375,000

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Answer:

Explanation:

When there are more substitutes for a product, the demand for the product is more price elastic. The implication of this is that the demand of such product will drop when there is increase in it price because people can get another product which will play the same role with the previous at a lesser price. Hence, the demand for the product vis more price elastic.

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