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a_sh-v [17]
3 years ago
9

If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of sales, what would the profit perc

entage be if the direct costs of manufacturing were reduced from 50% to 47%
Business
1 answer:
irga5000 [103]3 years ago
7 0

Answer: 18%

Explanation:

Assume sales is $100.

Profit is 15% of sales so profit is:

= 15% * 100

= $15

Cost is 50%:

= 50% * 100

= $50

If costs were reduced to 47%, it would become:

= 47% * 100

= $47

This means that $3 has been freed up.

This $3 will go to the profit because the other costs are not dependent on production and so are considered fixed.

With $3 going to profit, the profit becomes:

= 3 + 15

= $18

Profit percentage:

= 18 / 100

= 18%

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The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has
erica [24]

Answer:

Short 1.5 shares

Explanation:

Given data :

Risk free rate = 3%

current price ( market price ) = $25

Delta of  1-year at money European call on MCD = 0.5

<u>Determine how many shares of MCD John should either Long or short to achieve a delta-neutral </u>

use the relation below

4 * 0.5  + 1 ( 0.5 - 1 )  + x = 0

x ( number of shares ) =  - [ 4 * 0.5  + 1 ( 0.5 - 1 ) ]

                                     = - 1.5 shares

negative ( - ) means MCD should short 1.5 shares

5 0
3 years ago
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):____
AlekseyPX

Answer:

b. Alternative cost. 

Explanation:

Sunk cost is cost that has been incurred and cannot be recovered.

Out of pocket cost is a cost incurred out of an employees personal cash reserves for which he may be reimbursed for by his employers.

Differential cost is the cost of two different options.

Opportunity cost is the benefit lost when one alternative is chosen over other alternatives.

I hope my answer helps you.

3 0
3 years ago
Beginning inventory for the month contained 3,000 units that were 35% complete with respect to materials. 57,000 units were comp
notka56 [123]

Answer: 57,550 units

Explanation:

When using the weighted average method, the units completed and transferred out are assumed to include the opening inventory.

The weighted average equivalent units are therefore:

= Units completed and transferred out + Equivalent ending units

= 57,000 + (10% * 5,500)

= 57,000 + 550

= 57,550 units

6 0
3 years ago
Generally, revenue from sales should be recognized at a point when
qaws [65]

Answer:

D. none of these answer choices are correct.

Explanation:

The principle of revenue recognition occurs when the revenue is realized or earned either cash is received or not and it also serves the accounting accrual basis. Realizable also means that the buyer gets the product but the payment is made afterward.

In this, it does not depend on cash transactions.  

Hence, the option D is correct

3 0
3 years ago
The mangerial act of developing, implementing, and controlling marketing programs is called ___________.
Charra [1.4K]

Answer: The correct answer is "the marketing management process".

Explanation: The mangerial act of developing, implementing, and controlling marketing programs is called the marketing management process.

The marketing process consists in analyzing the opportunities that the market offers us, researching and selecting the appropriate niches and designing and planning strategies.

The general marketing process in any company includes all the phases that it goes through until a marketing strategy is implemented, executed and evaluated, analyzing it from practically the moment it is born and it is just a simple idea.

8 0
4 years ago
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