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11111nata11111 [884]
3 years ago
6

Bloom Company management predicts that it will incur fixed costs of $266,000 and earn pretax income of $360,400 in the next peri

od. Its expected contribution margin ratio is 54%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs.
Business
1 answer:
Rasek [7]3 years ago
8 0

Answer:

1. $1,160,000

2. $534,600

Explanation:

1. Computation for the amount of total dollar sales

Using this formula

Total dollar sales=Fixed costs plus pretax income / Contribution margin ratio

Let plug in the formula

Total dollar sales=$626,400 / 54%

Total dollar sales =$1,160,000

($266,000+$360,400=$626,400)

Therefore the amount of total dollar sales is $1,160,000

2.Computation for the amount of total variable costs.

Sales $1,160,000

Less:

Fixed costs ($265,000)

Pretax income ($360,400)

Variable costs $534,600

Therefore the amount of total variable costs is $534,600

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Answer:

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Although business opportunities offer less support than franchises, this could be an advantage for you if you thrive on freedom. Typically, you won't be obligated to follow the strict specifications and detailed program that franchisees must follow. With most business opportunities, you would simply buy a set of equipment or materials, and then you can operate the business any way and under any name you want. There are no ongoing royalties in most cases, and no trademark rights are sold.

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Juan is speaking at a senior center about the advantages of buying items online. Knowing that many of his listeners no longer dr
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3 years ago
An open-market purchase Group of answer choices increases the number of dollars and the number of bonds in the hands of the publ
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Answer:

increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public.

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Answer:

A.

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