For every A you earn on your report card, your grandma gives you a twenty dollar bill. This is an example of

Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketin

pishuonlain [190]

Answer:

Option (a) is correct.

Explanation:

Contribution margin per marketing plan = Sales - Variable cost

= $3,000 - $2,000

= $1,000

A.

(1) $Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}$

$Break-even\ in\ rooms=\frac{400,000}{1,000}$

Break even in marketing plan = 400

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 400 × 3,000

= 1,200,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

= 1,500,000 - 1,200,000

= 300,000

$Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}$

$Margin\ of\ safety\ ratio=\frac{300,000}{1,500,000}$

= 20%

B.

(1) Contribution margin per marketing plan = Sales - Variable cost

= $4,000 - $2,000

= $2,000

$Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}$

$Break-even\ in\ rooms=\frac{400,000}{2,000}$

Break even in marketing plan = 200

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 200 × 4,000

= 800,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

= 1,500,000 - 800,000

= 700,000

$Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}$

$Margin\ of\ safety\ ratio=\frac{700,000}{1,500,000}$

= 47%

Therefore, option (a) would achieve the margin of safety ratio more than 45%.

7 0

3 years ago

. Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory, March 1 6,000 Ma

rodikova [14]

Answer:

1. Cost of goods manufactured = $150,500

2. Net income = $36,500

3. Total Inventory = $61,500

Explanation:

Requirement 1

Zoe Corporation

Schedule of cost of goods manufactured

For the month ended March 31

Direct Materials:

Beginning Materials inventory $6,000

Add: Raw materials purchases 92,000

Raw materials available for use $98,000

Less: Ending Raw Materials 8,000

Direct materials used $90,000

Direct Labor 25,000

Prime Cost $115,000

Factory overhead 37,000

Total manufacturing cost $152,000

Add: Work in process, March 1 22,000

Less: Work in process, March 31 (23,500)

Cost of goods manufactured $150,500

Requirement 2

Zoe Corporation

Income Statement for manufacturing company

For the month ended March 31

Sales revenue $257,000

Less: Cost of goods sold

Beginning finished goods inventory $ 21,000

Add: Cost of goods manufactured (Req.1) 150,500

Finished goods available for sale 171,500

Less: Ending finished goods inventory (30,000)

Cost of goods sold 141,500

Gross Profit $115,500

Less: Sales and administrative expenses 79,000

Net operating Income $36,500

Requirement 3

Zoe Corporation

Balance Sheet

As at March 31

Inventory:

Materials $8,000

Work-in-process 23,500

Finished goods 30,000

Total Inventory $61,500

Inventory consists of all the ending materials, ending work-in-process, and ending finished goods. All the ending items need to be shown in the balance sheet because those inventories will remain at hand at the end of the period.

5 0

3 years ago

Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of wareh

vampirchik [111]

Answer:

true

Explanation:

long term means it will be used for a long time thus if the price is not constant and keeps rising it wont be effective

6 0

3 years ago

Joneen owns a farm. in a signed writing, joneen gave sue the irrevocable right to use a road on his farm so that sue could more

nadezda [96]

Joneen gave Sue a cartway claim to access her own property across a portion of Joneen's property. This type of easement allows an individual to access their property via another, privately owned parcel for the purposes of accessing landlocked property.

8 0

3 years ago

The two pivotal factors that distinguish one competitive strategy from another boil down to Multiple Choice

kenny6666 [7]

The two pivotal factors that distinguish one competitive strategy from another boil down to Multiple Choice is explained in the following way

Explanation:

The generic types of competitive strategies include: low-cost provider, broad differentiation, best-cost provider, focused low-cost, and focused differentiation strategies. Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is: their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. ... meaningfully lower overall costs than rivals on comparable products.

1- By using its lower-cost edge to underprice competitors and attract price-sensitive buyers in great numbers to increase total profits.

When a Low-Cost Provider Strategy Works Best

Most buyers use the product in the same ways. Buyers incur low costs in switching among sellers. Large buyers have the power to bargain down prices. New entrants can use introductory low prices to attract buyers and build a customer base.

4 0

3 years ago