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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

You might be interested in
You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the to
Serggg [28]

Answer:

A. 3403.75 dollars

B. 3150

C. 0.579

D. Is an attachment

Explanation:

A. We first find the premium cost

= 0.05x5000 x 1+0.06/4

= 250x1.015

= 253.75

From here we find expected dollar cost

= Exchange rate x units + premium

= 0.63x5000+253.75

= 3,403.75 dollars

B. Forward rate = 0.63

Total cost of dollar

= 0.63x5000

= 3150

C. The investor would be indifferent at 0.579

Forward rate = unit * future + premium

3150 = 5000 * future + 253.75

3150-253.75 = 5000*future

We solve and divide through by 5000

Future = 0.579

D is in the attachment

4 0
2 years ago
An​ on-line ticket site was recently offering tickets for a soccer match between Manchester United and Fulham at a price of poun
dusya [7]

Answer:

The tickets cost $208.74

Explanation:

The exchange rate is an indirect quotation from the dollar's perspective if dollar is considered to be the domestic currency.

We know that $1 =  0.618 pound

If the price of the ticked is 129 pounds, to convert it to dollars, we need to divide the pound amount by the exchange rate of dollar to pound.

Thus, 129 pounds in dollar are,

129 / 0.618 = $208.7378 rounded off to $208.74

3 0
3 years ago
North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 68 percent of sales. The firm has an average in
Masteriza [31]

Answer:

13 days

Explanation:

We are to calculate the days of inventory on hand.

Days of inventory on hand = number of days in a period/ inventory turnover

Inventory turnover = Cost of goods sold / average inventory

Cost of goods sold = 0.68 x $948,000 = $644,640

Inventory turnover = $644,640 / $23,000 = 28.027826

Days of inventory on hand = 365 / 28.027826 = 13.02 days

I hope my answer helps you

5 0
3 years ago
You are making a $120,000 investment and feel that a 15% rate of return is reasonable, given the nature of the risks involved. Y
Nana76 [90]

Answer:

$5,681.08

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator

Cash flow in year 0 = $-120,000 

Cash flow in year 1 = $48,000

Cash flow in year 2 = $54,000

Cash flow in year 3 = $76,000

Cash flow in year 4 = $-12,000

I = 15%

NPV = $5,681.08

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0
3 years ago
20. The shipment of goods or rendering of services to a foreign buyer, located in a
Mnenie [13.5K]
That is Importing. Option A.
7 0
2 years ago
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