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SSSSS [86.1K]
2 years ago
8

If the contribution margin is not sufficient to cover fixed expenses:.

Business
1 answer:
Elan Coil [88]2 years ago
7 0

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms.  After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

brainly.com/question/24881206

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What is a knowledge worker? What HRM changes can be expected in dealing with knowledge workers with respect to recruiting, selec
weqwewe [10]
<h2>Knowledge worker make difference by thinking in a variety of way.</h2>

Explanation:

Rather than regular worker who do manual work / routine work / physical work, Knowledge worker are those who always thinks in variety of ways to solve complex issues, create new products and take company in a different route of success which can be achieved with ease.

The HR should play a major role in motivating knowledge workers by,

  • providing flexible-timings
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4 0
4 years ago
A stock is trading at $50. You believe there is a 60% chance the price of the stock will increase by 10% over the next 3 months.
Ber [7]

Answer:

The answer is $475.

Explanation:

We have the writer of the put contract has the obligation to buy the share at $50 ( as the put is the at-the-money put) in 3 months time. The writer of the put also has received the premium at $650 for assuming the obligation to buy at the predetermined price.

Thus, the expected returns is calculated as below:

-[0.60 x 100 x Max[$0,$50 - ($50)(1.1)] + 0.30 x 100 x Max[$0,$50 - ($50)(0.95)] + 0.10 x 100 x Max[$0,$50 - ($50) (0.80)] + $650 = - [0.6 x 100 x 0 + 100 x 0.3 x 2.5 + 0.1 x 100 x 10] + 650 = $475.

6 0
3 years ago
Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commerc
iogann1982 [59]

Answer:

investment-grade property

Explanation:

Investment-grade property are properties that have a high degree of public and consumer appeal. They are properties that every institutional investors will want to have in its portfolio. The attraction of Investment-grade property may be the quality, size, location, scarcity of such in the location, proximity to valued infrastructure or public utility e.t.c. Investment grade property are more valued than those that are not graded.

3 0
3 years ago
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities
BigorU [14]

Answer: a. Net income, current assets, and current liabilities

Explanation:

The Operating Cashflow relates to cash transactions that have to do with the normal operations of the business. In other words, the business that the firm does to make revenue. It therefore includes, production, purchases, admin expenses, net income and the assets required to run the business.

Operating cashflows will therefore be affected by the Net Income as this is the end result of the business transactions the business engaged in. The current assets were needed to sell goods as well as being derived from selling goods and the current liabilities enabled the company to buy goods that they sell amongst other things.

Net income, current assets, and current liabilities are directly related to the operations of the business and so affect the Operating cashflows.

7 0
3 years ago
although stocks can generate greater revenue, they are also more risky than many forms of investments. true or false
34kurt
The correct answer for the question that is being presented above is this one: "TRUE." Although stocks can generate greater revenue, they are also more risky than many forms of investment. Dividends are not guaranteed; each company's board of directors has to vote to issue dividends, and they may not always do so.
4 0
3 years ago
Read 2 more answers
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