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3 years ago

If contribution margin is $220000, sales is $400000, and net income is $180000, then variable and fixed expenses are:________

Business

1 answer:

alexira [117]3 years ago

6 0

Answer:

Total variable cost= $180,000

Fixed costs= $40,000

Explanation:

Giving the following information:

Contribution margin= $220,000

Sales= $400,000

Net income= $180,000

The contribution margin formula is as follow:

Total Contribution margin= sales - total variable cost

Therefore, we need to isolate the total variable cost and replace the variable with the data:

Total variable cost= sales - total contribution margin

Total variable cost= 400,000 - 220,000

Total variable cost= $180,000

Finally, the fixed costs:

Fixed costs= total contribution margin - net income

Fixed costs= 220,000 - 180,000

Fixed costs= $40,000

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Goodday is merging with Baker, Inc. Goodday has debt with a face value of $80 and Baker has debt with a face value of $40. The p

Julli [10]

Answer:

Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10

Explanation:

Given:

The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120

The Value of entities together in Economic state 1 = $160 + $20 = $180

Net equity in economic state 1 = Value of entities – total debt

= $180 - $120 = $60

Then,

The Value of entities in Economic state 2 = $40 + $80 = $120

Net equity in economic state 2 =

= $120 - $120 = $0

The Both states are equally possible.

Expected value of combined entity = ($60 + $0)/2 = $30

Market value of Goodday equity before merger = $40

Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10

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3 years ago

If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?

Goshia [24]

When a bond is trading at a premium, then the coupon rate is higher than the current yield and the yield to maturity.

<h3>How does a bond trade at premium?</h3>

For a bond to trade at premium, the coupon rate would have to be higher than the yield to maturity and the current yield.

Such a bond would trade at premium because the present value of the bond would be more than the par value thanks to the coupon being larger than the discount rate which is the yield to maturity.

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2 years ago

When prioritizing goals, how should you order them? by cost in alphabetical order by how long they take to achieve in order of i

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You should order them in A B C or 1 2 3 (high, medium, low priority)

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3 years ago

The National Council of Small Businesses is interested in the proportion of small businesses that declared Chapter 11 bankruptcy

Arlecino [84]

Answer:

n = 150.06

Explanation:

Since the confidence c = 95% = 0.95

α = 1 - 0.95 = 0.05

$\frac{\alpha }{2} = \frac{0.05}{2}=0.025$

z score of 0.025 is the same as the z score of 0.5 - 0.025 = 0.475

From the probability table, $z_{0.025}=z_{0.475}=1.96$

Also E = 0.08

Therefore the sample size n is given by:

$n = \frac{1}{4}(\frac{z_{0.025}}{E} ) ^2=\frac{1}{4} *(\frac{1.96}{0.08})^2 =150.06$

n = 150.06

The sample must be at least 150.06 to be 95% sure that a point estimate will be within a distance of 0.08 from p

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3 years ago

Crane Company has a unit selling price of $500, variable costs per unit of $260, and fixed costs of $184,800. Compute the break-

Ostrovityanka [42]

Answer:

Break-even point in units= 770

Explanation:

Giving the following information:

Selling price= $500

Unitary variable cost= $260

Fixed costs= $184,800

To calculate the break-even point in units using the mathematical equation, we need to use the following formula:

Net income= unit contribution margin*x - fixed costs

x= number of units

0= (500 - 260)*x - 184,800

184,800/240 = x

770=x

Now, under the unit contribution margin method:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 184,800/240

Break-even point in units= 770

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3 years ago