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kari74 [83]
1 year ago
11

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 340,000 Variable expenses 170,000 Con

tribution margin 170,000 Fixed expenses 108,000 Net operating income $ 62,000 What is total contribution margin if sales volume increases by 30%?
Business
1 answer:
djyliett [7]1 year ago
4 0

Answer:

$204,000

Explanation:

Given that,

Total Sales = $ 340,000

Variable expenses = $170,000

Contribution margin = $170,000

Fixed expenses = $108,000

Net operating income = $ 62,000

Contribution margin ratio:

= Contribution margin ÷ Sales

= $170,000 ÷ $ 340,000

= 0.5 or 50%

If sales volume increases by 30%,

Revised sales:

= Total sales + 20% of Total sales

= $340,000 + (0.2 × $340,000)

= $340,000 + $68,000

= $408,000

Revised contribution margin:

= Revised sales × Contribution margin ratio

= $408,000 × 50%

= $204,000

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Answer:

a. Amount = $1653.93

b. Amount = $1835.82

Explanation:

a.

The Present Value is the deposited amount of future payments.

The payments are annuity if they are made at the end of each year.

To compute the present value of an annuity with periodic payment, we'll make use of the following formula:

M(1 - (1 + r)^- T)/ r

Where

M = Periodic Payment = $230

T = Periods = 15

r = rate = 11% = 0.11

So, Amount of Deposit = 230(1 - (1 + 0.11)^-15)/0.11

Amount = 230(1 - (1.11)^-15)/0.11

Amount = 230 ( 1 - 0.209)/0.11

Amount = 230 * 0.791/0.11

Amount = 230 * 7.191

Amount = $1653.93

b.

In this case payments are made at the beginning of each period

This means that the payments are an annuity due.

To compute the present value of an annuity due with periodic payment, we'll make use of the following formula

M((1 + r) - ( 1 + r) ^ ( 1 - T))/r

Amount = 230(( 1 + 0.11) - (1 + 0.11) ^ (1 - 15))/0.11

Amount. = 230((1.11 - 1.11^-14))/0.11

Amount = 230(1.11 - 0.232)/0.11

Amount = 230 * 0.878/0.11

Amount = 201.94/0.11

Amount = $1835.82

3 0
2 years ago
44. CEO compensation The total compensation of the chief executive officers (CEOs) of the 800 largest U.S. companies (the Fortun
galben [10]

Answer

The answer and procedures of the exercise are attached inthe following images.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

7 0
1 year ago
Instructions: Round your answers to 2 decimal places. If you are entering a negative number include a minus sign. a. Using the m
BabaBlast [244]

Answer:

The answer is below

Explanation:

The graph is attached below.

a) The price elasticity of demand is given by:

price elasticity of demand = \frac{\%\ change\ in\ quantity }{\%\ change\ in\ price}=\frac{\Delta Q}{\Delta P}

\Delta Q=\frac{Q_2-Q_1}{(Q_2+Q_1)/2} \\\\\Delta P=\frac{P_2-P_1}{(P_2+P_1)/2}

Price of elasticity demand =   \frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} }

Price of elasticity demand =   \frac{\frac{50-100}{(50+100)/2} }{\frac{4.5-4}{(4.5+4.0)/2} }=\frac{-0.6667}{0.1176} =5.7

Since the price of elasticity demand > 1, it is elastic

b) Price of elasticity demand =   \frac{\frac{200-300}{(200+300)/2} }{\frac{3-2}{(3+2)/2} }=\frac{-0.4}{0.4} =1

Since the price of elasticity demand = 1, it is unitary

c) Price of elasticity demand =   \frac{\frac{400-450}{(400+450)/2} }{\frac{1-0.5}{(1+0.5)/2} }=\frac{-0.1176}{0.6667} =0.18

Since the price of elasticity demand < 1, it is inelastic

6 0
2 years ago
Suppose that Sidney runs a micro financing agency that lends money to people to start small businesses in poor countries. Sidney
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Answer:

1) $9615.38

2)$9245.56

3) b is the correct option.

Explanation:

See the attached pictures for detailed answer.

5 0
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In November 2004, Kraft Foods sold its confectionery business to Wrigley for $1.85 billion cash, which consisted primarily of th
VMariaS [17]

Answer:

The correct answer is letter "B": Sell-off.

Explanation:

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Kraft Foods Inc., in November 2004, published the sell of its sugar confectionery enterprises because they had discontinued operations. They planned to restructure the organization realigning and lowering the structure cost and optimizing capacity utilization.

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