The drug enforcement agency (dea) is a example of __

Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu

quester [9]

Answer:

a. The contribution margin ratio will be 41%

b. The income from operations will be $12,420,000.

Explanation:

a. The sales are given at $112,900,000.

The fixed costs are $25,000,000.

The variable costs are $66,611,000.

The contribution margin will be

=Sales-variable costs

=$(112,900,000-66,611,000)

=$46,289,000

The contribution margin ratio will be

=(Contribution margin/sales)*100

=($46,289,000/ $112,900,000)*100

=41%

b. Now, if the contribution margin ratio is 40%.

The sales are given at $34,800,000.

The fixed costs are $1,500,000.

Income from operations or operating profit will be

=(sales*contribution margin ratio)-fixed cost

=$(34,800,000*0.4)-$1,500,000

=$12,420,000

7 0

3 years ago

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had

harkovskaia [24]

The journal entry, to record the sale of the treasury shares on February 1, would include:

a) debit to a loss account for $112,500

b) credit to Treasury Stock for $90,000

c) credit to a gains account for $112,500

d) debit to Treasury Stock for $90,000

Answer:

Option D Debit to Treasury Stock for $90,000

Explanation:

The journal entry of repurchase of treasury stock is as under:

Dr Treasury Stock $90,000

Cr Cash $90,000

As the treasury stock has been purchased for cash, the cash has been decreased and the decrease in treasury stock is credit in nature. Hence the decrease in stock is shown as debit and decrease in cash is shown as credit.

The rate as which the stock is purchased is the price at which treasury stock will be debited = Treasury shares purchased × Fair Value per Share

= 3,750 shares × $24

= $90,000

5 0

3 years ago

A very useful guide for making investment decisions is: The shorter the payback period, the more profitable the project. Group s

Allisa [31]

A very useful guide for making investment decisions is: The shorter the payback period, the more profitable the project: The shorter payback period makes the investment attractive but it isn't sure that it will be profitable.

An investment decision is a well-planned action that allocates financial resources to acquire the highest possible return

Investment decision taken by individual concern is of national importance because it determines employment, economic activities, and economic growth.

learn more about investment decision here

brainly.com/question/27303200

#SPJ4

8 0

2 years ago

A 58-year-old investor owns a single premium deferred variable annuity with a current value of $500,000. The original investment

Helga [31]

Answer:

D) using a 1035 exchange would avoid any current taxation.

Explanation:

A 1035 exchange gives permission for someone who owns a life insurance or annuity to exchange products even though this transaction would not be regarded as a sale.

This kind of sale exchange can be done from an insurance policy to an annuity. But it cannot be done the other way, that is from an annuity to an insurance policy.

4 0

4 years ago

Elinor is asked to invest $5100 in a friend's business with the promise that the friend will repay $5610 in one year. Eleanor fi

DaniilM [7]

Answer:

the opportunity cost of capital in this case is 8%

Explanation:

From the information given :

Elinor is asked to invest $5100 in a friend's business with the promise that the friend will repay $5610 in one year.

Eleanor finds her best alternative to this investment, with similar risk, is one that will pay her $5508 in one year.

U.S. securities of similar term offer a rate of return of 7%.

The opportunity cost of capital can be determined by using the expression: