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vagabundo [1.1K]
2 years ago
12

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Rest

in, Inc. Los Angeles Division Bay Area Division Central Valley Division Revenues $ 750,000 $ 200,000 $ 235,000 $ 325,000 Variable operating expenses 410,000 110,000 120,000 180,000 Controllable fixed expenses 210,000 65,000 75,000 70,000 Noncontrollable fixed expenses 60,000 15,000 20,000 25,000 In addition, the company incurred common fixed costs of $18,000. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increased by $50,000. If variable expenses are tied directly to revenues, the new Los Angeles segment profit margin is:
Business
1 answer:
goblinko [34]2 years ago
8 0

Answer:

$112,500

Explanation:

With regards to the above information, we would compute first the Los Angeles division revenue.

Contribution margin

= Loss Angeles division revenues - Variable operating expenses

Los Angeles division revenues

= $200,000 + $50,000

= $250,000

Variable operating expenses

= ($110,000 × $250,000) / $200,000

= $137,500

Therefore,

Contribution margin

= $250,000 - $137,500

= $112,500

It means that if variable expenses are tied directly to revenues, the new Los Angeles profit margin would be $112,500

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3 years ago
Assets are financed by creditors and owners. At 1/29/2021, approximately what percentage of Dollar General’s assets are financed
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Based on the amount of equity and that of assets, the percentage funded by owners is<u> 29.4%. </u>

<h3>What is the Percentage financed by owners?</h3>

This can be found by the formula:

= Equity / Assets x 100%

Solving gives:

= 6,702,500 / 22,825,084 x 100%

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Find out more on Equity at brainly.com/question/25847981.

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2 years ago
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Oksana_A [137]

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Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.

Terminal value = D₄ / ( required return - growth rate)

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D₃ = ‭3.49774‬ * 1.22 = $‭4.2672428‬

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svlad2 [7]

Answer:

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