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zmey [24]
3 years ago
8

A company sells 500 sleds per month for $80. Variable costs are $41 per unit and fixed expenses are $3,500 per month. The compan

y thinks that using a new material would increase sales by 70 units per month. If the new material increases variable costs by $4 per unit, the impact on contribution margin would be a ______.
Business
1 answer:
BlackZzzverrR [31]3 years ago
6 0

The impact on contribution margin would be a decrease.

<h3>What is a contribution margin?</h3>

A contribution margin is the price of an item less the variable cost of the item. Variable cost is the cost that varies with the cost of production .

Contribution margin = selling price - variable cost

Initial contribution margin = $80 - $41 = $39

New contribution margin = $80 - ($41 + $4) = $35

To learn more about variable cost, please check: brainly.com/question/26502221

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An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflati
Alisiya [41]

Answer:

option c) $ 12 billion

Explanation:

Data provided :

Required reduction in consumption = $ 36 billion

MPC = 0.75

Now,

Total income  = Required reduction in consumption / MPC

or

the Increase in tax = $ 36 billion / 0.75

or

= $ 48 billion

the government can raise the tax = $ 48 billion - $ 36 billion = $ 12 billion

Hence, the answer is option C

5 0
3 years ago
If ballard company reported assets of $500 and liabilities of $200, ballard's stockholders' equity equals:_____.
MatroZZZ [7]

If Ballard company reported assets of $500 and liabilities of $200, Ballard's stockholders' equity equals <u>$300</u>.

Liability is a time period in accounting that is used to explain any type of monetary duty that a commercial enterprise has to pay at the cease of an accounting period to someone or a commercial enterprise. Liabilities are settled with the aid of shifting economic blessings which include cash, items, or services.

Liabilities are any money owed to your enterprise, whether or not it's financial institution loans, mortgages, unpaid bills, IOUs, or some other amount of money that you owe someone else. if you've promised to pay a person an amount of cash within the future and have not paid them but, that is a liability.

Learn more about Liabilities here: brainly.com/question/17090843

#SPJ4

4 0
2 years ago
A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as
Nuetrik [128]

Answer:

False

Explanation:

3 0
3 years ago
All of the following statements are true about preferred stock EXCEPT:
Tju [1.3M]

Answer:

The answer is: B) In most cases dividends are paid semi-annually

Explanation:

Preferred dividends:

  • are paid before common dividends,
  • usually yield higher rates,
  • and are paid in shorter terms.                

In most cases they are paid on a monthly or quarterly basis. Semi-annual payments occur once every 6 months (or twice a year) and for preferred dividends that is usually considered a long time.

7 0
3 years ago
The bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000
Nostrana [21]

Answer:

The annual YTM will be = 6.133735546% rounded off to 6.13%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

C is the coupon payment

F is the Face value of the bond

P is the current value of the bond

n is the number of years to maturity

 

Coupon payment = 1000 * 0.06 * 6/12 = 30

Number of periods remaining till maturity = 11 * 2 = 22

semi annual YTM = [ (30 + (1000 - 989 / 22))  /  (1000 + 989 / 2)

semi annual YTM = 0.03066867773 or 3.066867773% rounded off to 3.07%

The annual YTM will be = 3.066867773% * 2 = 6.133735546% rounded off to 6.13%

6 0
3 years ago
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