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A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?

lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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3 0

2 years ago

Cella Ltd. has invested in certain projects to avall future benefits for its company. Which project could be classified as an ex

Lapatulllka [165]

Answer:

Opening new retail outlets in the city would be the project that could be classified as an expansion project.

Option: (B)

Explanation:

Expanding a company or a business refers to expanding the span and the outreach of the business through activities like increased manufacturing, sales, and marketing of the manufactured products. The activity of expansion can be undertaken by increasing the efficiency of the existing manufacturing plant, by establishing new manufacturing plants, by increasing the number of retail outlets through which the finished goods can be sold directly to the consumers, etc.

When the demand for a particular product increases, it is deemed intelligent to opt to expand the business in order to increase the quantity of output so that the prevalent demand can be met. As the output is increased, the need for more sales facilities also arises simultaneously. Hence, increasing the number of retail outlets is considered as a part of expansion projects.

8 0

4 years ago

Allocating a transaction price to multiple performance obligations includes which of the following steps: Consolidate the compon

rjkz [21]

Answer:

The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

Explanation:

A performance obligation can be defined as a promise made in a contractual agreement by a seller or service provider to provide goods and services to a customer. This obligation exists only if a customer can benefit from the goods or services provided.

Allocating a transaction price to multiple performance obligations includes;

The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

7 0

3 years ago

1. What's NOT an assumption we usually make about costly products and services?

zloy xaker [14]

Answer:

B

Explanation:

I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.

3 0

3 years ago

Northstar Company uses ABC to account for its chrome wheel manufacturing process.

Gwar [14]

Answer:

Instructions are below.

Explanation:

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 12,000/3,000= $4 per part

Machine setup= 3,400/10= $340 per setup

Insertion of parts= 48,000/3,000= $16 per part

Finishing= 80,000/2,000= $40 per finishing direct labor hour

Job 420 used 150 parts, required 2 setups and consumed 100 finishing hours.

Job 510 used 500 parts, required 4 setups and consumed 310 finishing hours.

To allocate costs, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Job 420:

Materials handling= 4*150= $600

Machine setup= 340*2= $680

Insertion of parts= 16*150= $2,400

Finishing= 40*100= $4,000

Total allocated cost= $7,680

Job 510:

Materials handling= 4*500= $2,000

Machine setup= 340*4= $1,360

Insertion of parts= 16*500= $8,000

Finishing= 40*310= $12,400

Total allocated cost= $23,760

6 0

3 years ago