Answer:
Total contribution margin= $53,136
Explanation:
Giving the following information:
Sales (3,600 units) $ 97,200
Variable expenses 50,544
Contribution margin 46,656
First, we need to calculate the unitary variable cost and the selling price.
Selling price= $27
Unitary variable cost= $14.04
Now, we can calculate the total contribution margin for 4,100 units.
Total contribution margin= 4,100*(27 - 14.04)
Total contribution margin= $53,136
Answer:
When expected return is lowered to 8% share price is $53
Explanation:
The price of a stock =Do*(1+g)/r-g
Do is the dividend received last year of $1.00
g is the growth rate of dividend which is 6% per year
r is the required rate of return which is 8%
The price of Bosstown Inc's stock=$1.00*(1+0.06)/(0.08-0.06)
=$53
The price at 11.6% rate of return is also computed thus:
price=$1.00*(1+0.06)/(0.116-0.06)
=$18.93
Hence by reducing expected return from 11.6% to 8% , the share price increased from $18.93 to $53,hence the higher the expected return , the lower the share price
Answer:
All partners are limited from personal liability in certain situations.
Explanation:
Limited partnerships and limited liability partnerships offer some of their owners limited personal liability for business debts. One partner is considered a general partner. The general partner makes decisions and has increased liability.
Answer:
5.43%
Explanation:
Using du point formula for return on equity formula, the profit margin can be computed by rearranging the formula to make profit margin the subject.
return on equity=profit margin*assets turnover*leverage ratio
return on equity=growth rate*(1-dividend payout ratio)=9.89%*(1-40%)=5.93%
assets turnover=sales/total assets=inverse of total assets to sales=1/1.3
leverage ratio=total assets/equity
debt-equity ratio=0.42( debt is 0.42 while equity is 1 i.e 0.42/1=0.42)
total assets=debt+equity=0.42+1=1.42
equity is 1
5.93%=profit margin*1/1.3*1.42/1
5.93%=profit margin*1.092307692
profit margin=5.93%/1.092307692
profit margin=5.43%
Answer: Salvation army
Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.
Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.
Thus, we can conclude that the right option is D.
