answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
telo118 [61]
2 years ago
14

Kite Corporation has provided the following contribution format income statement. Assume that the following information is withi

n the relevant range. Sales (3,000 units) $ 180,000 Variable expenses 108,000 Contribution margin 72,000 Fixed expenses 62,400 Net operating income $ 9,600 The contribution margin ratio is closest to:
Business
1 answer:
laiz [17]2 years ago
3 0

Answer:

40%

Explanation:

Contribution margin = Contribution ÷ Sales × 100

= 72,000 ÷ $180,000 × 100

= 0.4 × 100

= 40%

Please not that other information given in the question are not relevant in arriving at the contribution margin ratio hence will be ignored.

You might be interested in
Classifying all data in an organization may be impossible. There has been an explosion in the amount of unstructured data, logs,
Lynna [10]
Por que no se pudo disolver en uno de los recipientes
5 0
1 year ago
If house A had a sale price of $70,000, monthly rent of $500, and a GRM of 140; House B had a sale price of $68,500, monthly ren
Lubov Fominskaja [6]

Answer:

$69,300

Explanation:

Given the following :

House A :

Sales price = $70,000

Monthly rent = $500

GRM = 140

House B :

Sales price = $68,500

Monthly rent = $490

GRM = 139.8

House C :

Sales price = $70,500

Monthly rent = $485

GRM = 139.6

The gross rent multiplier GRM is obtained as the proportion of the sale price of a property to it's monthly rent.

GRM = (Sales price / monthly rent)

If a property is rented for 495 and house A is the

most comparable, then

Sales price will be closest to:

GRM of House A × monthly rent of property

140 × $495 = $69,300

7 0
1 year ago
Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that
Sergio [31]

Answer:

P0 = $51.9956 rounded off to $52.00

Explanation:

The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.

The formula for price of the stock today under this model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]

Where,

  • D0 is the dividend today or most recently paid dividend
  • g1 is the initial growth rate which is 20%
  • g2 is the constant growth rate which is 8%
  • r is the required rate of return

P0 = 2.5 * (1+0.2) / (1+0.15)  +  2.5 * (1+0.2)^2 / (1+0.15)^2  +  

2.5 * (1+0.2)^3 / (1+0.15)^3  +

[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)

P0 = $51.9956 rounded off to $52.00

3 0
1 year ago
A company is considering purchasing a machine that costs $232000 and is estimated to have no salvage value at the end of its 8-y
Inessa05 [86]

Answer:

45.69%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ average investment

where,  

Net income is

= Annual revenues - annual operating expenses

= $120,000 - ($38,000 + $232,000 ÷ 8 year)

= $120,000 - ($38,000 + $29,000)

= $53,000

And, the average investment would be

= (Initial investment) ÷ 2

= ($232,000) ÷ 2

= $116,000

Now put these values to the above formula  

So, the rate would equal to

= $53,000 ÷ $116,000

= 45.69%

7 0
2 years ago
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can
bixtya [17]

Answer:

Georgeland has an absolute but not a comparative advantage in producing clothing.

Explanation:

Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.

Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.

Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.

In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.

3 0
1 year ago
Other questions:
  • Why are some modular constructions exempt from the rule that buildings must be built from the ground up?
    12·1 answer
  • Lucinda cares a lot about the amount of work being produced by her team, but she is also concerned about her employees' job sati
    12·1 answer
  • A business school Dean wanted to test the null hypothesis that the mean GPA upon graduation is the same for Marketing, Managemen
    7·1 answer
  • One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department
    14·1 answer
  • Which of the following statements highlights the difference between the CPI (consumer price index) and the GDP deflator?
    12·1 answer
  • Which of the following suggestions for integrating graphics in a report is the most accurate?
    10·1 answer
  • Emma and Anna went to the market to buy 25 fruits. Emma bought a few apples which cost $2 each, and Anna bought some oranges whi
    11·2 answers
  • The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $125 per share for months, and you believ
    13·1 answer
  • Selected data taken from the accounting records of Laser Inc. for the current year ended December 31, are as follows: Balance, D
    15·1 answer
  • ​Madsen, Inc. intends to increase its profits by​ 50% in the next fiscal year. Which of the following is most likely to be a lea
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!