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PSYCHO15rus [73]
3 years ago
12

A shift towards a higher proportion of sales of products with a higher contribution margin per unit will most likely result in a

(n
Business
1 answer:
finlep [7]3 years ago
7 0

Answer:

If products with a higher contribution margin increase their weight in a company's sales mix, that will lead to a higher total contribution margin, and a higher operating profit.

Explanation:

E.g. a company sells 2 products, and it sells them in equal proportion:

  • 100 units of product A, which has a contribution margin per unit of $5
  • 100 units of product B, which has a contribution margin per unit of $7

Total contribution margin = $500 + $700 = $1,200

if the sales mix changes, and the sales of product B represent 60% of total sales:

  • 80 units of product A, which has a contribution margin per unit of $5
  • 120 units of product B, which has a contribution margin per unit of $7

Total contribution margin = $400 + $840 = $1,240

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____ refers to how the organization meets goals and deals with outsiders
Paraphin [41]
External adaptation, hope that helps!
8 0
3 years ago
Read 2 more answers
The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited amount of the three ingredients
Sloan [31]

Answer:

Objective function (maximize)

Profit=0.40L+0.50V

Constraints

- Availabitily of salt: 2L+3V\leq4800

- Availability of herbs: 1C+2V\leq 2000

- Availability of flour: 6C+8V\leq9600

Explanation:

This a linear programming problem. We have an objective function (in this case it is the profit) that we want to optimize, but complying with constraints (in this case, the availability of ingredients).

The objective function can be defined taking into account the profits of the two kind of chips:

Profit=0.40L+0.50V

The constraints can be expressed taking into account the amount of ingredients every unit of chip needs and stating that it has to be less or equal to the availability of this ingredient:

- Availabitily of salt:

2L+3V\leq4800

- Availability of herbs

1C+2V\leq 2000

- Availability of flour

6C+8V\leq9600

With these expressions the linear programming problem can be solved.

3 0
3 years ago
You are given the following information with respect to a bond: par value: 1000 term to maturity: 3 years annual coupon rate 6%
Minchanka [31]

Answer:

Tha annual effective yield rate for the bond is:

= 6.2%

Explanation:

a) Data and Calculations:

Bond par value = $1,000

Annual coupon rate = 6%

Annual spot interest rates = 7%, 8%, and 9% for year 1, year 2, and year 3 respectively

Current value of bond = $970 ($1,000 * 99% * 99% * 99%)

Annual coupon payments = $60 * 3 = $180

Effective rate for the three years = $180/$970 * 100 = 18.6%

Annualized effective yield rate = 6.2% (18.6%/3)

OR

Annualized effective yield rate = (Annual coupon payments/Current value of bonds)

= 6.2% ($60/$970)

5 0
2 years ago
Exercise 2-15 Computing net income LO A1 A corporation had the following assets and liabilities at the beginning and end of this
Ipatiy [6.2K]

Answer:

a. $32,039

b. $19,439

c. -$12,961

d. $9,639

Explanation:

We will use accounting equation to solve the above question.

Assets = Liabilities + Equity

Also;

Net income will be the difference in equity plus dividends minus contributions

= [Ending equity - Beginning equity ] + Dividends

Since the beginning and ending equity is the same for all the years, then we'll have

$71,500 = $30,652 + Equity

Equity = $40,848

Ending equity = $122,500 - $49,613

= $72,887

a. Income : $72,887 - $40,848 + 0 - 0

= $32,039

b. $72,887 - $40,848 + $1,050 × 12 - 0

= $19,439

c. $72,887 - $40,848 + 0 - $45,000

= -12,961

d. $72,887 - $40,848 + $1,050 × 12 - $35,000

= $32,039 + $12,600 - $35,000

= $9,639

6 0
3 years ago
Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the
dsp73

Answer:

C. Shut down the presses printing my book

Explanation:

Since the average variable cost of producing the book is above the demand curve, the best course of action is to shut down the printing (production) of more books. The author would lose less money by shutting down operations rather than continuing production at a variable cost higher than the demand he's receiving for the books.

In economics, when profit is less than the average variable cost, firms are advised to stop production in the short run and incur economic loss on fixed inputs. This is because with continued operations, total revenue would not only be lower than total cost, but rather, would also be less than total variable cost.

8 0
3 years ago
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