The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
The break-even in monthly dollar sales is closest to $578,100
Explanation:
The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
<u></u>
<u>Given that </u>
<u>Selling price of the product=</u>$185.00 per unit
variable cost=$55.50 per unit
fixed expense=$404,670 per month
<u></u>
= ($185.00 per unit − $55.50 per unit) ÷ $185.00 per unit
= $129.50 per unit ÷ $185.00 per unit = 0.70
<u>Dollar sales to break even = Fixed expenses ÷ CM ratio
</u>
= $404,670 ÷ 0.70
= $578,100
The break-even in monthly dollar sales is closest to $578,100
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Financial venture. even his wife was supportive. albert liked a number of riskier company
Answer:
Explanation:
A)
cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1
cost of not taking a cash discount = 66.5%
B)
Effective rate of interest if the company borrows from the bank = (17/(100-12))
Effective rate of interest if the company borrows from the bank = 19.3%
Answer:$4650
Explanation:
The cost that is recoverable is $30 per hour that was agreed as the hour to be spent in learning the soft ware. The sunk cost it's an irrecoverable cost that does influence decision making. When the agreed leaning cost of $30 per hr for 45hr of $1350 is deducted from the asking price of $6000 we have the $4650
