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Vadim26 [7]
2 years ago
9

Psari's, a company that sells fishing​ nets, provides the following information about its​ product: Targeted operating income $

54 comma 000 Sales price per unit 6.00 Variable cost per unit 2.00 Total fixed costs 115 comma 000 What is the contribution margin​ ratio? (Round any intermediate calculations and your final answer to two decimal​ places.) A. 33.33​% B. 66.67​% C. 100​% D. 166.67​%
Business
1 answer:
Molodets [167]2 years ago
6 0

Answer:

B. 66.67​%

Explanation:

Contribution is the difference between the company's total revenue and the total variable cost. The ratio of the contribution to sales or revenue gives the contribution margin ratio.

The contribution may also be derived from the addition of the fixed cost and the operating income.

Contribution margin

= $115,000 + $54,000

= $169,000

Let the number of units to be sold to achieve targeted income be U

6U - 2U - 115,000 = 54,000

4U = 169,000

U = 42,250

Contribution margin ratio = 169000/(6 * 42,250)

= 66.67%

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Cable Company reported bond interest expense of $40,000 for the current year. During the year, the balance in the premium on bon
rodikova [14]

Answer:

The amount of cash paid for intrest expense during the year was $ 41.500.

Explanation:

Cash paid for interest expense  = bond interest expense + Decrease in premium on bonds payable account

                                                     = $ 40,000 + $ 1,500

                                                     = $ 41,500

Therefore, the amount of cash paid for intrest expense during the year was $ 41.500.

8 0
2 years ago
Which of the following statements is true regarding self-managed work teams?A) Self-managed work teams typically consist of fort
Maslowich

Answer: E

Explanation:Self-managed work teams represent an approach to organizational design that goes beyond quality circles or ad hoc problem-solving teams. These teams are natural work groups that work together to perform a function or produce a product or service. They not only do the work but also take on the management of that work functions formerly performed by supervisors and managers. This allows managers to teach, coach, develop and facilitate rather than simply direct and control. In a self Self-managed work teams there’s decrease position take on supervision .

4 0
2 years ago
Einstein Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be
sveta [45]

Answer:

$29,000

Explanation:

Calculation would be as follows:

Particular                                   Amount ($)

Beginning Cash                          10,000

Add: Cash Receipt                      85,000

Less: Cash Disbursement          (66,000)

Cash Available                            29,000

Hence, the cash available over disbursement for the month would be $29,000.

3 0
2 years ago
An investment in the Mezzogiorno will receive a subsidized loan of $12 million from the Italian government. The loan bears an in
Murrr4er [49]

Answer:

$1.92 million

Explanation:

The value of the subsidy per year = $12,000,000 x 3% = $360,000

Now we have to find the present value of the cash flows using an excel spreadsheet and the net present value function =NPV(discount rate,series of cash flows)

discount rate = 10% (market rate)

cash flows = 8 cash flows of 360,000 each

=NPV(10%,360000,360000,360000,360000,360000,360000,360000,360000) = $1,920,573 ≈ $1.92 million

6 0
2 years ago
The following data are for a series of increasingly extensive flood-control projects.
marissa [1.9K]

Answer:

$28,000 and $12,000, respectively

Explanation:

Marginal cost = incremental cost from Plan C to Plan D

= total cost (plan D) - total cost (plan C)

= 72,000 - 44,000 = $28,000

Marginal benefit = incremental benefit from Plan C to Plan D

= total benefit (plan D) - total benefit (plan C)

= 64,000 - 52,000 = $12,000

Therefore marginal cost and benefits for Plan D = $28,000 and $12,000, respectively

4 0
2 years ago
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