18) Whiskey, gin, and vodka are examples of spirits (3 pts).

The high-low method calculates the total fixed cost as the: Group of answer choices

MaRussiya [10]

Answer:

c. difference between total variable costs and total costs at a particular activity level

Explanation:

The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.

Variable cost per unit is found by : change in cost divided by the change in activity level for two points

Variable Cost per unit = Highest activity cost - Lowest activity cost

Highest activity units - lowest activity units

Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost

Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)

Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]

4 0

3 years ago

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?

Degger [83]

Answer:

Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.

Your pretty much short in supply and cant fulfill the demand

While surplus

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

Theirs a a large amount of supply due to the pricing most likely beign high

Explanation:

7 0

4 years ago

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):Sales $38,800Food and pac

Julli [10]

Answer:

a. The Company's contribution margin is $10,476 millions

b. The Company's contribution margin ratio is 27%

c. The Income from operations will increase $621 millions

Explanation:

In order to calculate Wicker Company's contribution margin we have to use the following formula:

contribution margin=Sales- Variable costs

Sales=$38,800 millions

Variable costs=Food and packaging+Payroll+40%General, selling, and administrative expenses

Hence, Variable costs=$16,284+$9,800+40%($5,600)=$28,324 millions

a. Therefore, contribution margin=$38,800-$28,324=$10,476 millions

In order to calculate the contribution margin ratio we would have to use the following formula:

contribution margin ratio=contribution margin × 100

Sales

contribution margin ratio=$10,476 × 100

$38,800 millions

b. contribution margin ratio=27%

In order to calculate how much would income from operations increase if same-store sales increased by $2,300 million for the coming year, with no change in the contribution margin ratio or fixed costs, we have to make the followinf calculation:

$2,300 million×0.27=$621 millions

c. Income from operations will increase $621 millions

5 0

4 years ago

____________ which occurs during the third phase of the writing process, means improving the content and sentence structure of y

Ymorist [56]

Answer: Revising.

Explanation: Writing refers to a method of communication with the use of symbols, letters, alphabets and signs in an understandable and readable format. The writing process may involve prewriting,drafting , Revising and editing.

The Revision process is usually the third step in the writing process as it is done after drafting and before the final editing. It simply means taking another look at what was written. It may include addition of fact or argument, Reorganizing and Restructuring points made, Reorganizing the tenses and grammatical structure, it could also include redesigning the outlook of a presentation.

6 0

3 years ago

Floyd Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6

djyliett [7]

Answer:

a.

r = 0.06697 or 6.697% rounded off to 6.70%

b.

r = 0.1202 or 12.02%

Explanation:

a.

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 * (1+g) is dividend expected for the next period /year

g is the growth rate

r is the required rate of return or cost of equity

Plugging in the values for P0, D0 and g in the formula, we can calculate the value of r to be,

76 = 0.5 * (1+0.06) / (r - 0.06)

76 * (r - 0.06) = 0.53

76r - 4.56 = 0.53

76r = 0.53 + 4.56

r = 5.09 / 76

r = 0.06697 or 6.697% rounded off to 6.70%

.

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.059 + 1.2 * (0.11 - 0.059)

r = 0.1202 or 12.02%

7 0

3 years ago