income statement for last month: Sales $1‚000‚000 Less: Variable Expenses $ 700‚000 Contribution Margin $ 300‚000 Less: Fixed Expenses $ 180‚000 Operating Income $ 120‚000 The company has no beginning or ending inventories. A total of 20‚000 units were produced and sold last month. What is the company’s margin of safety in dollars? $400 000 10 points Question 2 1. The following is Addison Corporation’s contribution
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2. The contribution margin per chair for the Colonial model is: A) $51. B) $16. C) $35. D) $25. The answer is b. CM = P-V = $60 - $35 - $9 = $16. Page 1 3. If the sales mix and sales units are as expected‚ the break-even in sales dollars is closest to: A) $132‚000. B) $148‚500. C) $143‚000. D) $139‚764. Price: Variable Costs: Contribution Margin: Contribution Margin Ratio: The answer is c. Colonial to Early American Sales Mix: 3:1 Weighted Average Contribution Margin Ratio: .75(.2667) +.25(
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used? Will trends in these ratios always move in the same direction? All the three bases are used to find the return earned with respective to sales as well as investment made. When the profit is compared with sales‚ it is called as the net profit margin. When the profit is compared with assets‚ it is called as return earned on total investment and when profit is compared with stockholders’ equity‚ it is called as return on equity. All these are profitability ratios and help to analyze the profitability
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The social comparison theory was initially proposed by Leon Festinger in 1954. This theory states how we tend to compare ourselves to others as we develop‚ and learn more about ourselves. Festinger stated that‚ “Social comparison theory proposes that people have a drive to evaluate their progress and standing on various aspects of their lives and‚ in the absence of objective standards‚ people compare themselves to others to know where they stand” (Fardouly‚ Diedrichs‚ Vartanian‚ Halliwell‚ 2015)
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Being Wrong: Adventures in the Margin of Error Being wrong and having someone tell you that your wrong isn’t a good feeling. Many people feel like they can never be wrong and in my opinion that’s a very ignorant way to think. No one was made perfect and I say that to say this‚ being wrong is imbedded in our human DNA. That’s why in mathematics and science they have formulas that have human error or margin of error as variables in their calculations. I remember one day I was arguing with a friend
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Alfred Adler’s Personality Theory: A Reflection on What Really Ate at Gilbert Grape Johnathan Quach University of California‚ Irvine Alfred Adler’s Personality Theory: A Reflection on What Really Ate at Gilbert Grape Abstract This essay aims to provide a psychological personality analysis of Gilbert Grape‚ the main character of the film What’s Eating Gilbert Grape‚ through Alfred Adler’s fulfillment theory. In his approach to personality psychology‚ Adler places great emphasis
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and nearby Euro countries. 2. Mission’s price for the coupling in questions (PT40) is $1.26‚ FOB‚ Los Angeles. The target gross margin for exports is 30% FOB $1.26 (location Los Angeles) COGS $ .88 (Fixed) GTM $0.38 CIF $1.3627= $1.36 FOB (1.05) (1.03)= 1.0815 Pricing FOB $1.33- $.88= $.45 $1.54- $.88=$.66 Target (Gross Margin for exports 30%) 3. Mission has a reputation for high prices in the US‚ and running the factory below capacity limits will raise
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expenses for this product to be 35% of sales‚ and wanted a net profit of 5% of sales. The retailer expected no markdowns. What retail selling price should be set for each hammer? [Hint: The way to handle this problem is to say that the Gross Profit Margin has to cover the 35% of expenses applicable to the product plus the 5% of net profit wanted. And once you know the GPM%‚ you know the Cost percentage of the Selling Price. ] 2. Competition in a line of sporting goods limits the selling price
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Running Head: JUSTIFICATION REPORT Increase Profit Margin for Krispy Kreme Lawrence A. Mayo‚ JR Strayer University Online English 315 Professor Kelly Gordon November 11‚ 2013 Nov. 28‚ 2013 Mr. James H. Morgan‚ CEO Krispy Kreme Doughnut Corporation P.O Box 83 Winston-Salem‚ NC 27102 Dear Mr. Morgan: Enclosed is a copy of my justification report for restructuring your business model and vision for Krispy
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Rationalize Channel Margins to Optimize Distribution Costs By Makarand Joshi Asst. Professor - Orange City Institute of Higher Education‚ Nagpur Email: makarand1234@gmail.com; Mobile 9422805719 ABSTRACT: Distribution Channel Margins form an important component of the distribution cost which directly affects the bottom line of any company. While the companies are trying to reduce the distribution costs‚ to improve their own margin pressures‚ there seem to be little innovations in
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