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2 years ago

Othman Inc. has a $800,000 investment opportunity with the following characteristics:

Business

1 answer:

mash [69]2 years ago

3 0

Answer:

The correct answer is option (b).

Explanation:

According to the scenario, the given data are as follows:

Sales = $2,240,000

Contribution margin ratio = 50%

Fixed expenses = $1,008,000

So, First we calculate the contribution margin by using following formula:

Contribution margin = Contribution margin ratio × Sales

= 50% × $2,240,000

= $1,120,000

So, we can calculate the margin for this investment by using following formula:

Margin = Net operating income ÷ Sales

Where, Net operating income = Contribution margin - Fixed expenses

= $1,120,000 - $1,008,000

= $112,000

Now by putting the value in the formula, we get

Margin = $112,000 ÷ $2,240,000

= 0.05

= 5%

Hence, the margin for this investment opportunity is 5%.

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The manager of a gas station has observed that the times required by drivers to fill thier car's tank and pay are quite variable

Serhud [2]

Answer:

48.65%

Explanation:

Since the average time it takes car drivers to fill their tanks is exponentially distributed at 7.5 minutes, we can elaborate an exponential formula to calculate the number of times a gas tank can be filled in a certain period of time:

e⁻ˣ/ⁿ

e = 2.718
x = 5 minutes
n = 7.5 minutes

= 2.718⁻⁵/⁷°⁵ = 0.5134

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2 years ago

Read 2 more answers

Total surplus in a market is equal to a. value to buyers - amount paid by buyers. b. amount received by sellers - costs of selle

Allisa [31]

Answer:

Option (C) is correct.

Explanation:

Total surplus refers to the sum total of producers surplus and consumers surplus. Graphically, it is the area between the demand curve and supply.

Consumers surplus refers to the benefits obtained by the buyers. It is the difference between the consumer's willingness to pay and the actual amount paid for the product.

Producers surplus refers to the benefits obtained by the producers. It is calculated as the difference between the price received by the sellers and the producer's willingness to accept the price.

The total surplus is the difference between the consumer's willingness to pay for the product and the producer's willingness to accept the price.

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1 year ago

Black Horse Corporation manufactures a product with the following full unit costs at a volume of 2000 units:

evablogger [386]

Answer:

D. Increase by $24,412.50

Explanation:

The computation of the increase in profit is shown below:

= Number of units for purchase × contribution margin per unit

where,

Number of units for purchase is 225 units

And, the contribution margin per unit = Selling price per unit - variable cost per unit

The selling price per unit is $275

And, the variable cost per unit is

= $100 + $40 + $75 × 30% + $25 × 50% + $40 × 10%

= $100 + $40 + $22.5 + $4

= $166.50

So, the contribution margin per unit is

= $275 - $166.50

= $108.50 per unit

So, the increase in profit is

= 225 units × $108.50

= $24,412.50

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2 years ago

Tom is expanding his business of manufacturing television sets to several neighboring countries. Which controllable risk might T

alexgriva [62]

The answer is A.,.........................

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1 year ago

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Gina and Bill are managers for two separate projects; both freely express their anger at work. Compared to Bill, Gina is more li

cestrela7 [59]

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1 year ago