1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
When manufacturing overhead costs are assigned to production in a process cost system, it means that
Colt1911 [192]

Answer:

<em>When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.</em>

Explanation:

When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

Absorption costing system is that where units of products and inventories are valued using full cost. Full cost implies that each product would be charged for an amount of the<em> fixed production overhead </em>in addition to the variable cost.

The fixed overhead is charged using a predetermined overhead absorption rate.

8 0
3 years ago
Hey guys I know this isn’t a math or any school related thing but can y’all please subscribe to my channel . Please
Oduvanchick [21]
Yeah yeah ofccccccc!!!!!!
5 0
3 years ago
Read 2 more answers
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000
11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

= $14,000 + $40,000 + $3,650 + $30,800

= $88,450

The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years

= $7,300 ÷ 2 years

= $3,650

6 0
3 years ago
Which of the following is an advantage that shopping at a physical store has over shopping online?
krok68 [10]

Answer:

A. Personal help and interaction wider.

Explanation:

Due to the physical contact and getting to physically recognise each other, the familiarity increase the level of personal relationship.

5 0
2 years ago
the government believes that the equilibrium price is too low and tries to help almond growers by settinga price floor at Pf. Wh
musickatia [10]

Answer: D) B

Explanation:

The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.

After the Price Floor was introduced however, area B has become a Producer Surplus.

7 0
3 years ago
Other questions:
  • Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.) Unit Selling Price Unit Variable Costs Unit Cont
    11·1 answer
  • Lana owns a house worth $325,000 and has a mortgage of $245,000. She owns a guitar worth $750. She also owns a car worth $15,000
    6·2 answers
  • James Corporation is an agent of Alten Corporation. Their agreement specifies that James will receive a commission equal to 15%
    13·1 answer
  • You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q)
    12·1 answer
  • Amazon offers customers customized recommendations based on previous purchases. Which of the following does this​ illustrate? A.
    12·1 answer
  • You have been newly employed in a very reputable organisation in one of the following industries: agriculture, banking, “oil and
    13·1 answer
  • XYZ Co. uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. It based its
    13·1 answer
  • Explain the imortance of feedback in the communication process.(3marks)
    12·1 answer
  • Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se
    6·1 answer
  • In project procurement management, obtaining seller responses, selecting sellers, and awarding contracts is part of the _____ pr
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!