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Aleks [24]
2 years ago
14

Compute and interpret the contribution margin ratio using the following data: sales, $5,000; total variable cost, $3,000.Interpr

et what these result mean using a sentence.
Business
1 answer:
Dmitriy789 [7]2 years ago
7 0

Answer:

0.4 or 40%

Explanation:

The formula for Contribution Margin Ratio is:

[TS - TVC] / TS

Where TS = Total Sales

TVC = Total Variable Cost

Applying the formula,

[5,000 - 3,000] / 5,000  = 2000/5000  = 0.4

Turning this value to a percentage, 0.4 × 100 = 40%

The interpretation of this is that for every item sold, 40% of the sales price is available to cover fixed costs.

Remember: The addition of fixed cost to variable cost = total cost

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On December 31, 2017, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note
garik1379 [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
During which time period was the annual rate of increase of the speed the greatest? a) from year 1 to year 2 b) from year 1 to y
muminat

The annual rate will increase with the greatest speed from year 1 to year 3.

<h3>What is the growth rate?</h3>

A growth rate is the proportion that changes the price of all goods and services produced in a country over a specific time period in comparison to a previous period.

The growth rate is used to measure the comparative fitness of an economic system over time. The numbers are commonly compiled and announced quarterly and annually.

From 1948 to 2021, the GDP Annual Growth Rate in the United States averaged 3.14 percent, with an all-time high of 13.4 percent in the fourth sector of 1950.

From the above declaration, it's clear that choice C, year 1 to year 3, is the proper option.

Learn more about Growth rate, refer to:

brainly.com/question/13776641

4 0
2 years ago
Adong's Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory for 65 days,
tatuchka [14]

Answer:

A. $45

B. $80

C. $8,167

Explanation:

(a) Calculation to determine the firm's cash conversion cycle

Cash conversion cycle=$65 +$15 – $35

Cash conversion cycle=$45

Therefore the firm's cash conversion cycle is $45

(b) Calculation to determine the firm's operating cycle

Operating cycle =$65 +$15

Operating cycle=$80

Therefore the firm's operating cycle is $80

(c) Calculation to determine the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days

First step is to calculate the Daily expenditure

Daily expenditure =$1,960,000/360

Daily expenditure=$5,444.44

Now let determine the Annual savings

Annual savings =$5,444.44 *15*0.10

Annual savings=$8,167

Therefore the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days will be $8,167

5 0
2 years ago
At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
scoray [572]

Answer:

The correct answer to the following question is $36,000.

Explanation:

Given information  -

Units anticipated to be produced - 300,000 units

Variable cost - $150,000

Fixed cost - $600,000

Beginning inventory - 5000 units

Ending inventory  - 7000 units

Income under absorption costing - $40,000

Now under the absorption costing, rate of fixed overhead cost per unit -

Fixed cost / Number of units produced

= $600,000 / 300,000

= $2

In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -  

Fixed overhead rate per unit x number of units produced but not sold

= $2 x 2000 ( 7000 units - 5000 units )

= $4000

So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -

$40,000 - $4000

= $36,000 .

6 0
3 years ago
A firm has $800 in inventory, $1,400 in fixed assets, $500 in accounts receivables, $100 in net working capital, and $50 in cash
Alex777 [14]

Answer:

Add it all Together?

Explanation:

2850?

3 0
2 years ago
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