Explain how Costco paying its employees more is good for Costco's business

Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p

amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

5 0

3 years ago

If you were advising which actions a company should take to perform value chain activities more cost effectively, you would not

Shalnov [3]

Answer: redesign its products to eliminate those features that might have market appeal, but would excessively increase production costs.

Explanation:

The main aim of every organization are typically cost minimization and profit maximization. If I wanted to advise a company on the kind of actions to take to perform value chain activities more cost effectively, I'll tell them to improve their supply chain efficiency as well as use economies of scale and effective utilization of its resources.

Therefore, redesigning its products to eliminate those features that might have market appeal, but would excessively increase production costs is wrong as this will only lead to increase in cost.

4 0

3 years ago

Which of the following best describes the ordered pairs listed below? (-5, -7), (0, -12), (-5, -19), (8, -20)

viva [34]

It is not a function bc -5 repeats 2x

4 0

3 years ago

The United Kingdom started regulating the size of grocery stores in the early 1990s, and today, the average size of a typical

Svetradugi [14.3K]

Answer:

C. The long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

Explanation:

The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

Since the size of the grocery stores decreases, the average costs decreases. So, The long-run average cost of production is lower when there are diseconomics of scale.

Hope this helps.

0 0

3 years ago

gamma manufacturing employs some of the top professionals in its field, and because of their skills and experience, gamma is hig

taurus [48]

Gamma Manufacturing employs some of the top professionals in its field, and because of their skills and experience, Gamma is highly efficient and outperforms its competitors. Gamma Manufacturing has a(n)<u> Competitive Advantage</u> over its competition.

A competitive advantage distinguishes a company from its competitors. It contributes to more significant prices, more customers, and brand loyalty. Creating such a competitive advantage is one of the most important goals of any firm. It is critical for corporate success in today's environment. Companies will struggle to exist if they do not have it. A competitive advantage enables a company to outperform its competitors. It refers to variables that allow a corporation to produce better services or items. "Competitive advantage" is a concept that is commonly used in business, but it can also apply to countries, organisations, and individuals.

Learn more about Competitive Advantage here:

brainly.com/question/13215401

#SPJ4

7 0

2 years ago