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prohojiy [21]
3 years ago
9

Raven Company has a target of earning $70,000 pre-tax income. The contribution margin ratio is 30%. What amount of dollar sales

must be achieved to reach the goal if fixed costs are $36,000?
Business
1 answer:
victus00 [196]3 years ago
6 0

Answer:

Target dollar sales = $353,333

Explanation:

First we need to find out how much contribution do we need to get a profit of 70,000.

Profit= Contribution - Fixed cost.

70,000=Contribution-36,000

70,000+36,000=106,000

Contribution= 106,000

Now in order to find the sales we will use the formula

Target Sales= Contribution/Contribution margin

Contribution = 106,000

Contribution margin =30%=0.3

Input the values into the formula

106,000/0.3=353,333.333

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On January 1, 2018, Ogleby Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for O
Olin [163]

Answer:

With respect to this lease, for 2018 Ogleby should record interest expense of $57,058 and depreciation expense of $107,225. The right answer is c

Explanation:

According to the given data we have the following:

PV of lease=$750,578

Annual payment=$180,000

Rate of interesr=10%

The interest expense would be calculated as follows:

Interest expense = ( PV of lease - Annual payment ) * Rate of interest

Interest expense = ( $750,578 - $180,000 ) * 10%

Interest expense = $57,058

Therefore, With respect to this lease, for 2018 Ogleby should record interest expense of $57,058 and depreciation expense of $107,225.

4 0
3 years ago
Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming​ 3-month pe
Rama09 [41]

Answer:

Check the explanation

Explanation:

a. Calculate Christoph’s expected profit assuming a pure spot market speculation strategy.

Details                                                                                     Amount

Number of Swiss francs can buy and  

invest with $100,000 ($100,000/$0.5820)                      171821.31

After 3 months SF's are sold to acquire

dollars back   SF 171821.31* $0.6250)                                      $107,388

Less: Invested dollars                                                       $ 100,000.00

expected profit assuming he buys or sells

SF three months forward                                                        $7,388

b. Calculate C’s expected profit assuming he buys or sells SF three months forward:

Details                                                                         Amount

Number of Swiss francs can buy and

invest with $100,000 ($100,000/$0.5640              $ 177304.96

After 3 months SF's are sold to acquire

dollars back   SF 177,304.96* $0.6250)                   $ 110,815.60

Less: Invested dollars                                               $ 100,000.00

expected profit assuming he

buys or sells SF three months forward                         $10,816

8 0
2 years ago
Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increas
8_murik_8 [283]

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3

8 0
3 years ago
6. The recommended approach for strategy formulation by a leader is for him or her to: Group of answer choices B. inspire a larg
larisa86 [58]

Answer:

B. inspire a large number of people to help achieve organizational purposes.

Explanation:

Business strategy sets the overall direction for the business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

The recommended approach for strategy formulation by a leader is for him or her to inspire a large number of people to help achieve organizational purposes.

8 0
3 years ago
A south sea island produces only coconuts. In​ 2015, the price of a coconut is ​$1.00 and the quantity produced is 250 . In 2019
maria [59]

Answer:

the real GDP in 2019 is $200

Explanation:

The computation of the real GDP is shown below;

= Base year price × quantity produced in 2019

= $1 × 200

= $200

Hence, the real GDP in 2019 is $200

The above should be used to determine the real GDP in 2019 and the same should be relevant

8 0
2 years ago
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