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satela [25.4K]
3 years ago
12

MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and

tennis products. The following information is available:
Standard Division Premium Division Total
Sales $400000 $600000 $1000000
Variable costs $340000 420000
Contribution margin $60000 $180000
Total fixed costs $300000

Required:
a. What is the weighted-average contribution margin ratio?
b. What is the break-even point in dollars?
Business
1 answer:
Helen [10]3 years ago
3 0

Answer and Explanation:

a. The computation of the weighted average contribution margin ratio is shown below:

The Contribution margin ratio is

= (Combined contribution ) ÷ (Sales)

= ($60,000 + $180,000) ÷ ($1,000,000)

= ($240,000) ÷ ($1,000,000)

= 0.24

b. Now the break even point in dollars is

= Fixed cost ÷ contribution margin ratio

= $300,000 ÷ 0.24

= $1,250,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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On January 1, Year 1, the Accounts Receivable balance was $20,100 and the balance in the Allowance for Doubtful Accounts was $1,
wel

Answer:

$18,400

Explanation:

A/R                                                               $20,100

Less: Allowance for doubtful accounts         ($1,700)

net realizable value of A/R                             $18,400    

The write off amount is already included in allowance for doubtful accounts on provision basis therefore it can't be separately deducted again.                                                

4 0
3 years ago
An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower
Klio2033 [76]

Answer:

The opportunity cost will be Buying a new lawnmower

Explanation:

Opportunity cost refers to the cost of a forgone alternative. In this scenario, since the owner of a landscaping business has decided to spend the extra income on advertising campaign in order to increase sales, the forgone alternative here becomes buying a new lawnmower.

6 0
3 years ago
Why would a producer conduct a marginal analysis?
Ber [7]

Answer:

B to determine whether a price increase

Explanation:

cuz I said

4 0
3 years ago
If aggregate supply is vertical, then which of the following statements must be true?
never [62]

Answer: A. Aggregate demand does not affect the quantity of output.

Explanation: Aggregate supply curve is perfectly vertical in a long run, Economist believed that the changes in aggregate demand only caused a temporal change in an economy output

Aggregate supply in a short run, the quantity supplies increase as price rise.

Aggregate demand does not affect the quantity of output If the aggregate supply is vertical.

6 0
3 years ago
What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
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Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

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D0- 2.7

g- 10%

K- 16%

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Price of stock = $49.5

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3 years ago
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