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mixer [17]
3 years ago
7

GPB's contribution margin ratio is 85% ( or .85) and its fixed monthly expenses are $63,000. Assume that the cost structure of G

PB does not change.
Required:
Estimate of the company's net operating income in a month when sales are $103,000.
Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

Net income= $24,550

Explanation:

The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>

<u></u>

<u>First, we need to calculate the total contribution margin:</u>

Total contribution margin= sales*contribution margin ratio

Total contribution margin= 103,000*0.85

Total contribution margin= $87,550

<u>Now, the net income:</u>

Net income= 87,550 - 63,000

Net income= $24,550

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Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C
sertanlavr [38]

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

6 0
3 years ago
A competitive firm produces output using three fixed factors and one variable factor. The firm's short run production function i
Nesterboy [21]

Answer:

D) 75

Explanation:

Our initial production function is:

q = 305X - 2X²        

we calculate the derivative of q:

(q') = 305 - 4X

MP = 305 - 4X

$10 / $2 = 305 - 4X

5 = 305 - 4X

4X = 305 - 5 = 300

x = 300 / 4

x = 75

6 0
3 years ago
Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. In the Machining Dep
alexira [117]

Answer:

12,600

Explanation:

Concept of Equivalent units of production measures the number of units in terms of percentage completion in input elements of the process.

<u>The equivalent units of production for materials</u>

Note : all materials are issued at the beginning of the process, therefore materials are 100% complete in both Widgets transferred out and Ending widgets.

Calculation :

transferred out (8,600 × 100%)     = 8,600

ending inventory  (4,000 × 100%) = 4,000

total                                                 = 12,600

Therefore,  the equivalent units of production for materials in the Machining Department is 12,600.

4 0
3 years ago
Suppose that for 10 bicycles, the total fixed cost is $100 and total variable cost is $300. Then the average fixed cost and aver
Stells [14]

The price one bicycle is $21

Explanation:

because 100÷10=0.1

and the total is 300$

300-100=20

20+0.1=20

answer is 21

7 0
2 years ago
You must place a child in an approved child seat if the child is __________
katovenus [111]
<span>You must place a child in an approved child seat if the child is A. three years of age and under.
If the child is really young, then it has to sit in an approved child seat in a car, because if has to be protected from any harm while you are driving. Older kids, who can more or less protect themselves if something bad happens don't have to sit in these seats, however, they have to wear a seatbelt.
</span>
8 0
3 years ago
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