QUIZ

Trendy Toes produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each pa

harina [27]

Answer:

Results are below.

Explanation:

To calculate the contribution margin and contribution margin ratio we need to use the following formulas:

contribution margin= selling price - unitary variable cost

contribution margin= 2 - 1.2= 0.8

contribution margin ratio= contribution margin / selling price

contribution margin ratio= 0.8 / 2

contribution margin ratio= 0.4

Now, we can calculate the break-even point in units and dollars:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 85,000 / 0.8

Break-even point in units= 106,250

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 85,000 / 0.4

Break-even point (dollars)= $212,500

Finally, the desired profit is $26,000:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= 111,000 / 0.8

Break-even point in units= 138,750

4 0

3 years ago

The significant increase in _____________ marketing has forced on companies a new set of social and ethical issues that focus pr

JulijaS [17]

Answer:

The significant increase in internet marketing has forced on companies a new set of social and ethical issues that focus primarily on privacy issues

What is internet?

The global communication network that allows almost all computers worldwide to connect and exchange information.

3 0

2 years ago

The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annu

mihalych1998 [28]

Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

4 0

3 years ago

If the $10.61 cost in 1972 is equal to $68.69 in 2013, then what rate of inflation, i%=?, was used to determine the 2013 costs?

Paraphin [41]

Answer:

inflation rate = 4.66%

Explanation:

we can determine the inflation rate using the future value formula:

future value = present value x (1 + i)ⁿ

future value = $68.69
present value = $10.61
n = 41 years
i = inflation rate ?

$68.69 = $10.61 x (1 + i)⁴¹

(1 + i)⁴¹ = $68.69 / $10.61 = 6.474081056

⁴¹√(1 + i)⁴¹ = ⁴¹√6.474081056

1 + i = 1.0466

i = 1.0466 - 1 = 0.0466 = 4.66%

4 0

3 years ago

If the consumer price index was 166.6 in one year and 172.2 in the next year, then the rate of inflation from one year to the ne

Hatshy [7]

The formula to find the inflation or deflation rate is (P2-P1)/P1 x 100%, therefore you get 172.2-166.6 divided by 166.6, giving you the inflation rate of 3.36 rounded to two decimal places.

7 0

4 years ago