Answer:
The contribution margin ratio will increase.
Explanation:
Giving the following information:
BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.
Contribution margin ratio= (selling price - unitary variable cost)/selling price
New Contribution margin ratio= (120 - 58)/120= 0.52
Old Contribution margin ratio= (120 - 65)/120= 0.46
Answer:
D. $ 322,000
Explanation:
Delos, Inc.
Contribution margin format income statement
For sigma
Sales revenue (2,000 units × $350) = $700,000
Less: variable manufacturing cost = (2,000 units × $175) = ($350,000)
Less: sales commission = (700,000 × 4%) = ($28,000)
Contribution margin for sigma = $700,000 - $350,000 - $28,000
Contribution margin = $322,000
Therefore, option D is correct.
Answer:
because it's will Ganna give you a business
This consideration is related to the socio cultural environment:
a.) A new business decides to begin with the city its owners live in
since they are familiar with the local geography and tax issues.
Explanation:
The socio cultural environment one is familiar with influences them in many ways.
This also includes their choice of place for where they will start the business simply because they know that domain much more and it will be easier to be effective in there.
This is the reason that people are often told to be in their familiar turf.
The new business will be able to use its full contacts and have an insight on what works and what doesn't because they operate from their own area.
