The variable cost is calculated as -
Sales - Variable cost = Contribution Margin
Given, Contribution Margin = 25 %
Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %
25 % of Sales = Contribution Margin = $ 400,000
Sales = $ 400,000 ÷ 25 %
Sales = $ 1,600,000
Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000
Answer:
A. A user can select only a single cell for the Set Objective variable
Explanation: The set objective variable cell in solver is one of the three main parameters which should be defined when trying to work with the excel solver program. The objective cell usually represents a single cell which contains the formula that represents the goal or objective of the problem at hand by tweaking the values in the variable cells based on certain defined constraints stated by the user. The goal may be to minimize, maximize or achieve a specified target value.
Answer: $2,14,200
Explanation:
The total market value of the land and building = 3,20,000 + 4,40,000
=$7,60,000
Now, we have calculated the percentage of land involved in the total market value are as follows:
= \frac{320000}{760000} × 100
= 42%
Now,
the value of land = 42% of $5,10,000
= $2,14,200
This is the amount that corporation should record the cost of land.
