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Aleks [24]
3 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]3 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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The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000,
hodyreva [135]

Answer:

$6,000

Explanation:

Data provided

Beginning credit balance = $26,000

Net loss = $12,000

Paid dividends = $8,000

The calculation of Retained Earnings account is given below:-

Retained Earnings = Beginning balance - Net loss - Dividend

= $26,000 - $12,000 - $8,000

= $26,000 - $20,000

= $6,000

So, for computing the retained earning we simply applied the above formula.

5 0
4 years ago
Suppose that, in an attempt to combat severe unemployment, the government decides to increase the amount of money in circulation
ELEN [110]

Answer:

increases

higher

more

lower

lower

Explanation:

If the money supply is increased. individuals would have more money and consumption would increase. Increase in consumption would lead to a rise in demand.

when demand exceeds supply, prices rise,

When there is a rise in price, it encourages producers to increase production in order to increase their profit margin.

In order to expand production, more factors of production would be needed. So, more labour would be hired. thus, unemployment would fall.

it can be seen that higher inflation lowers unemployment

5 0
4 years ago
Manufacturing costs include Group of answer choices
jeka94

Answer:

the answer is b) direct materials, direct labor, and manufacturing overhead.

Explanation:

direct materials - the materials and supplies used to create a product. (wood used to make a table)

direct labor- the labor and service implemented in the process of delivering finished goods. (hours spent on crafting the table)

manufacturing overhead- any indirect costs involved in the production of the product.

7 0
3 years ago
What is one of the biggest challenges when companies are committed to sustainability?.
MrRissso [65]

Making the business case is one of the biggest challenges when companies are committed to sustainability. As sustainability is the better because it takes the business in a long run.

<h3>What are the cause of sustainability of business?</h3>

As the modern world, the risk of taking business in a long run becomes difficult because frequently change in technologies and trends of business.

Some challenges of sustainability are Loss of trust in the global corporation, Transparency is the new norm, Rapidly growing inequality, increased hazards and risks to business.

Thus, Making the business case is one of the biggest challenges

For more details about sustainability of business, click here:

brainly.com/question/25713190

#SPJ1

5 0
3 years ago
Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys $400 worth o
diamong [38]

Answer:

$1,050

Explanation:

Value Added Approach to calculating the GDP avoids double counting by adding only the value addition of all firms in an economy to obtain the GDP. Value addition for each firm can be calculated by deducting the intermediate purchase of each firm from its intermediate sales as follows:

Firm X value addition = ($250 * 3) - $400 - $200 = $750 - $600 = $150

Firm Y value addition = ($250 * 4) - $250 - $250 = $1,000 - $500 = $500

Firm Z value addition = (500 * 2) - $100 - $500 = $1,000 - $600 = $400

Therefore, we have:

The economy's GDP = $150 + $500 + $400 = $1,050

8 0
3 years ago
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