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zmey [24]
2 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]2 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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weqwewe [10]
Production Nd shipping is my best guess! Since it made a point that they ship all over the world



Hope I helped :) - beanz
8 0
3 years ago
If the kitchen in an operation has sewage backup the manager should
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<span>If the kitchen in an operation has sewage backup the manager should call a plumber to come fix the issue. If the sewage is backing up to the point it could contaminate any food being cooked/served, the manage should temporarily close down the restaurant until everything is fixed and working properly. </span>
3 0
3 years ago
Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a
melomori [17]

Answer:

$7.5

Greater

Explanation:

Price elasticity of demand = percentage change in quantity demanded/ percentage change in price

0.2 = 10%/ percentage change in price

percentage change in quantity demanded = 50% = 0.5

0.5 = (New price - $5) / $5

New price = (5 × 0.5) + 5 = $7.5

In the short run, demand is relatively inelastic because consumers need time to find suitable substitutes but in the long run, demand is usually more elastic.

I hope my answer helps you

5 0
3 years ago
When its sales were declining, canadian airline conducted a marketing survey to understand the expectations of the business trav
Montano1993 [528]

Answer:

The correct answer would be, The Canadian Airline would have used Lost Customer Recovery Strategy.

Explanation:

When the sales of the Canadian Airline declines, they surveyed their target market which is Business Class Travelers. From the responses of the customers, they found out that customers feel bounded by the staff of the airplane. They think that they were totally controlled by the staff on board.

Now if the Canadian Airline would have surveyed their former customers, then they would have known why they left their airline, and what was their concerns and what they want in this airline; then the strategy used by them would have Lost Customer Recovery Strategy.

7 0
3 years ago
43) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that t
11111nata11111 [884]

Answer:

PV= $9,626.49

Explanation:

Giving the following information:

Cash flow= $1,500

Interest rate= 9%

Number of years= 10

First, we will determine the future value, using the following formulas:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {1,500*[(1.09^10) - 1]} / 0.09

FV= $22,789.395

Now, the present value:

PV=FV/(1+i)^n

PV= 22,789.395/(1.09^10)

PV= $9,626.49

4 0
2 years ago
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