All categories

2 years ago

TB MC Qu. 03-111 A manufacturer of cedar shingles...

Business

1 answer:

MakcuM [25]2 years ago

7 0

Answer:

A. 42%

Explanation:

Given the above information,

Contribution margin ratio = (Selling price - Unitary variable cost) / Selling price

Selling price = $2,122,200 / 262,000 = $8.1

Total variable cost = Variable manufacturing expense $975,200 + Variable selling and administrative expense $260,400 = $1,235,600

Unitary variable cost = $1,235,600 / 262,000 = $4.72

Contribution margin ratio = (8.1 - 4.72)/8.1 = 41.73% = 42%

You might be interested in

A current liability is a debt that is reasonably expected to be paid a. out of cash currently on hand b. within one year c. out

ELEN [110]

Answer: within one year

Explanation:

Current liabilities are the liabilities that are incurred by a firm and must be settled within a year.

Typically, the current liabilities are settled by using the current assets. Examples of current liabilities are the accounts payable, noted payable, dividends and the short-term debt.

4 0

2 years ago

Smashed pumpkins co. Paid $200 in dividends and $624 in interest over the past year. The company increased retained earnings by

Maru [420]

Dividends that were paid last year = $200

Retained earnings = $522

Net Income = Retained earnings + Dividends paid = 200+522 =722

Tax rate was 38%.

Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52

Interest expense= 624

Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52

Earnings before interest and tax (EBIT) = 1,788.52

3 0

2 years ago

What should recreational boaters keep in mind if traveling in waters where there are anglers and hunters?

amm1812

Recreational boaters travelling on such water should give a wide berth and keep away from the water areas where the hunters are carrying out their activities; the boaters should be safety conscious and alert. This is necessary in order to avoid accident.

5 0

2 years ago

Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary con

n200080 [17]

Answer:

Gary's Basis in the partnership interest is $155,000

Explanation:

Particulars Amount ($)

Adjusted Basis Of Land 250000

Mortage*Share In Percentage ($200000*50%) (100000)

Additional Borrowing*Share In Percentage ($50000*50%) (25000)

#Difference*Share In Percentage ($100000-$40000)*50% 30000

Basis 155000

Difference:

Net Income 100000

Distribution Of Each Partner*2 ($20000*2) (40000)

8 0

2 years ago

When making investments, your primary motivation should be:

alexira [117]

When making an investment, the primary goal of every investor is to make money. Investing is an activity undergone by any individual called investor to gain profit. Profit is the amount of money the investor can earn out of his/her investment. The primary goal of every investor is profit.

7 0

2 years ago