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Elena-2011 [213]
3 years ago
5

Sheridan Company produces flash drives for computers, which it sells for $12 each. Each flash drive costs $9 of variable costs t

o make. During April, 1000 drives were sold. Fixed costs for April were $1000. How much is the contribution margin ratio
Business
1 answer:
Allushta [10]3 years ago
8 0

Answer:

12%

Explanation:

Contribution margin ratio is calculated as

= Contribution margin / Sales

Sales [ $12 each × 1,000 drives sold] $12,000

Less Variable costs [$9 each x 1,000 drives sold]

($9,000)

Contribution margin

$3,000

Less Fixed costs

($1,000)

Operating profit

$1,000

Recall that contribution margin ratio

= [ Contribution margin / Sales] × 100

= [ $3,000 / $12,000 ] × 100

= 12%

Therefore, contribution margin ratio is 12%

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Is defined as information containing? patterns, relationships, and trends of various forms of data?
DerKrebs [107]
Business Intelligence. Business intelligence is a broad term that covers basically any information in any format that may be relevant to business strategies. This can include, transaction info, product info, trends, app statistics and so much more. 
4 0
3 years ago
Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.
erastovalidia [21]

Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

Year 0= -112,000 + 21,200= -90,800

Year 1 to 4= 18,200*4= 72,800

Effect on income= -90,800 + 72,800= -18,000

7 0
3 years ago
Professor Bai is worried about his job security, and has started to venture into a new startup. Perhaps surprisingly, he is able
zvonat [6]

Answer:

Explanation:

Price is sum of:

1. Present value of expected dividend payments during 1-4 years;

2. Present value of the expected market price at the end of the fourth year based on growth at 5%.

Present value of expected dividend payments during 1-4 years:

PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482

*0.8929 = 1/1.12

PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042

PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691

PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445

Total = $17.661

Present value of the expected market price at the end of the fourth year:

Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)

5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9

Market price of the share at the end = $9/(0.12-0.05) = $128.57

Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7

So the price of share is $17.661+$81.7 = $99.37

8 0
3 years ago
You're trying to save to buy a new $199,000 Ferrari. You have $49,000 today that can be invested at your bank. The bank pays 5.7
Gelneren [198K]

Answer:

It will take 25.28 year to have enough to buy the car ( ignoring Inflation effect)

Explanation:

Current Deposit = PV = $49,000

Future Value = FV = $199,000

Interest Rate = r = 5.7%

Use following Formula

FV = PV ( 1 + r )^n

$199,000 = $49,000 ( 1 + 0.057 )^n

$199,000 / $49,000 = ( 1 + 0.057 )^n

4.06 = 1.057^n

Log 4.06 = n log 1.057

n = log 4.06 / log 1.057

n = 25.28

it requires 25.28 year to have an amount to buy the Ferrari.

6 0
3 years ago
Maymart Inc sells its products at the lowest prices in the industry, and it believes that this is the best way to stay ahead of
Y_Kistochka [10]

Answer:

A) The cost leadership strategy

Explanation:

Cost leadership is providing the service or supply of product without compromising the quality of service or product supplied.

In the given instance also, Maymart supplies goods without any decrease in quality standards that is goods are completely acceptable by customers, and that the goods are supplied at least price in the industry, this provides a competitive advantage to the company, by cost leadership.

As cost is least for consumer for same quality as demanded.

7 0
3 years ago
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