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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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goldenfox [79]

Answer:

Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.

Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.

Explanation:

6 0
10 months ago
Shane is looking for ways to get more capital for his appliance sales and service business. he is very protective of his company
Nitella [24]
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3 years ago
Using the following information, estimate Rogue Outdoors annual or monthly market demand for adult hiking shoes: Number of 18-65
8_murik_8 [283]

Answer:

Rogue Outdoor’s break-even point in units and dollars is 720 units and $72,000 respectively.

Explanation:

In this question we use the formula of break-even point in the unit which is shown below:

= (Fixed expenses) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $100 - $50

= $50

Now put these values to the above formula  

So, the value would equal to

= $36,000 ÷ 50 per units

= 720 units

And, the formula of break-even point in dollars which is shown below:

= (Fixed expenses) ÷ (Contribution margin ratio)

where,  

Contribution margin ratio = (Contribution margin ÷ selling price per unit) × 100

where, Contribution margin =  Selling price per unit - Variable expense per unit )

= $100 - $50

= $50

So, the contribution margin ratio = 50%

Now put these values to the above formula  

So, the value would equal to

= $36,000 ÷ 50%

= $72,000

4 0
3 years ago
Why do you have to include the opportunity cost of your time when you calculate your profits in your own business
SVETLANKA909090 [29]
Because opportunity cost is the value of something else you might have done with that time or money that you expended there.
hope this helps!
6 0
3 years ago
Shoshanna, the regional manager of a global sales organization, gives freedom to the sales representatives on the amount spent o
Citrus2011 [14]

Answer:

C. Ethical Standards

Explanation:

The ethical standards establish the parameters of behavior that owners and top executives expect from employees and also from suppliers, at least to the extent of their relationship with the organization.

3 0
2 years ago
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