Kalki and Kumud were partners sharing profits and losses in the ratio of 5:3. On 1st
April,2021 they admitted Kaushtubh as a new partner and a new ratio was decided as 3:2:1.
Goodwill of the firm was valued as ₹3,60,000. Kaushtubh couldn’t bring any amount for
goodwill. Amount of goodwill share to be credited to Kalki and Kumud Account’s will be:
Answers
The amount of goodwill to be credited to the Kalki and Kumud's accounts will be ₹1,80,000 and ₹1,20,000 respectively.
What is goodwill?Goodwill refers to the intangible value of a company that is derived from its reputation, brand recognition, customer loyalty, and other non-physical assets. It represents difference between the purchase price of company and the fair market value of its net assets. Goodwill is recognized as an asset on a company's balance sheet, and it is usually created when a company is acquired in a merger or acquisition. Goodwill is important because it can enhance a company's ability to generate future profits, attract new customers, and maintain its competitive advantage in the market. However, it is also subject to impairment, which occurs when the value of goodwill on a company's balance sheet exceeds its actual value. Impairment can result in a write-down of goodwill, which can have a negative impact on a company's financial statements and its overall valuation.
Total new ratio = 3 + 2 + 1 = 6
New ratio of Kalki = 3/6 = 1/2
New ratio of Kumud = 2/6 = 1/3
Goodwill to be credited to Kalki = (New ratio of Kalki/Total new ratio) * Goodwill value - Amount paid by Kaushtubh for the goodwill
Goodwill to be credited to Kalki = (1/2) x 3,60,000 - 0 = 1,80,000
Goodwill to be credited to Kumud = (1/3) x 3,60,000 - 0 = 1,20,000
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Related Questions
SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury: One group is described as the smallest of the three and tends to include younger consumers and slightly more males than the other two groups. This group is called ________.
A. luxury is my right
B. luxury is unnecessary
C. luxury is indulgence
D. luxury is functional
E. luxury is reward
Answers
SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury. The group is called a luxury indulgence. So, option c is the right choice
Indulge suggests extreme adherence and a lack of strength in satiating one's own or another's wishes. Whenever there was a good reason, I treated myself to food. Pampering refers to excessive indulgence in comfort and luxury with an accompanying enervating impact. wo an an an an an aw aa an a
Whether it's a cookie, video game, or diamond necklace, treating yourself to something you don't need is an indulgence. These are your tiny indulgences if you let yourself eat more chocolate cake or watch more TV than is actually healthy for you.
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make a plan or prototype of your strand STEM using business model canvas
Answers
business question can anyone help?
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Companies go through different phases to achieve product/market fit. These phases are: idea stage, the prototype stage, the launch stage, the traction stage, and the growth stage (option C).
What is product market fit?Product-market fit is an economic term that refers to the ability of a product to meet the needs of a good market.
What phases must a company go through to reach the right product/market?The phases that a company must go through to achieve product/market fit are:
Idea Stage: It is the first phase, in this phase the work team must generate a brainstorm about different products that can have a positive impact on the market and have a good reception. Later one or two are taken as the most viable options.
Prototype Stage: It is the second phase, in this phase the work team produces the first products of the previously selected idea.Launch Stage: It is the third phase, in this phase the work team launches its products to the market with the aim of testing the reception that the products have by consumers.Traction stage: It is the fourth phase, in this phase the work team validates what was the reception of the users towards their product. At this stage the company realizes if its product is viable or unviable.Growth Stage: In the last stage, in this stage the work group has obtained a viable result with its product and it is time to increase production, obtain higher profits and invest in improving the company.Learn more about production in: https://brainly.com/question/21254539
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Who collects income tax that is payable to the federal government?
Income tax that is payable to the federal government is collected by the
.
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The income tax that is payable to the federal government is collected by the Internal Revenue Service.
What is Tax?When the government of a nation collects money from its residents as a tax, it is used to fund various aspects of the nation's growth, such as the construction of hospitals, roads, temples and transit systems,
Taxes on individual income, payroll, and corporate income are the three main ways that the federal government receives its revenue. Individuals' wages and salaries as well as investment and other income are subject to income taxes.
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In the early part of 2021, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2020 but had never used an accountant’s services. Hugh and Jacobs began the partnership by contributing $150,000 and $100,000 in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full-time. They decided that year-end profits and losses should be assigned as follows:
Each partner was to be allocated 10 percent interest computed on the beginning capital balances for the period.
A compensation allowance of $5,000 was to go to Hugh with a $25,000 amount assigned to Jacobs.
Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively.
In 2020, revenues totaled $175,000, and expenses were $146,000 (not including the partners’ compensation allowance). Hugh withdrew cash of $9,000 during the year, and Jacobs took out $14,000. In addition, the business paid $7,500 for repairs made to Hugh’s home and charged it to repair expense.
On January 1, 2021, the partnership sold a 15 percent interest to Thomas for $64,000 cash. This money was contributed to the business with the bonus method used for accounting purposes.
Answer the following questions:
What journal entries should the partnership have recorded on December 31, 2020?
What journal entry should the partnership have recorded on January 1, 2021?
Answers
When more than one individual agrees to share ownership and contribute assets that will be placed in a common fund with the primary goal of distributing earnings among themselves as a consequence of the company activities, the arrangement is known as a partnership.
Provide an explanation of what you mean by "admit partnership."The admission of a new partner is the process through which a new partner joins the existing partnership of any corporation. The remaining partners will have to give up some of their profit-sharing proportion upon the admission of this new partner or the reconstruction of the partnership.
Hence, there are two alternative ways to admit partners. A new partner can join an existing partnership in one of two ways: 1) by purchasing the existing partners' shares, or 2) by investing in the company. It is also feasible to acquire interest and invest in order to be counted as a partner.
Before a new partner is admitted to the partnership, the following entries must be made:
The following entries should have been taken into account on December 31, 2014:
1. To document a cash investment.
Account Debit Credit
Cash 250,000
Hugh, Capital 150,000
Jacob, Capital 100,000
2. To keep track of interest obtained
Interest Receivable 25,000
Hugh, Capital 15,000
Jacob, Capital 10,000
3. To document the payment of compensation
Compensation Allowance 30,000
Hugh, Capital 5,000
Jacob, Capital 25,000
4. To register a profit share
Profit or Loss 29,000
Hugh, Capital 11,600
Jacob, Capital 17,400
5. To keep track of partner withdrawals
Hugh, Capital 9,000
Jacob, Capital 14,000
Compensation Allowance 23,000
6. To document the fixes Hugh made
Hugh, Capital 7,500
Repair and Maintenance 7,500
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Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $510,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,900. Merchandise with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases
Answers
Answer:
The ending inventory by using the gross method is $243,011
Explanation:
Purchases = Net purchases + Freight inwards
Purchases = 491,111 + 8,900
Purchases = 500,011
When Net purchase = Gross Purchase - Purchase return - Discount
Net purchase = 510,000 - 3,700- 15,189
Net purchase = 491,111
Working
Discount = (Purchases - Purchase return) × Discount rate
Discount = (510,000 - 3,700) * 3%
Discount = 15,189
Ending inventory = Beginning inventory + Purchases− Cost of good sold
Ending inventory = (105,000 + 500,011) - 362,000
Ending inventory = $243,011
Thus, the ending inventory by using the gross method is $243,011.
Trident Corporation had the following cash flows in the current year. Which one of the following is a financing activity cash flow?
A Rent on a warehouse amounting to $1.1 million
B Purchase of $125,000 worth of five-year bonds issued by Towson Utilities
C Preferred dividends to the tune of $330,000 paid to shareholders
D Lease income received on a piece of land
Answers
Preferred dividends to tune of $330,000 paid to the shareholders is financing activity cash flow.
What is cash flow?The change in a person's or company's cash on hand is referred to as cash flow (CF). In the world of finance, the expression is used to describe the amount of money (currency) that is created or consumed over a given period of time. There are many various kinds of CF used for operating a company and conducting financial research. Each one will be thoroughly covered in this manual. Investors and business owners worry a lot about CF because it is a company's lifeblood. You may wonder what separates CF from the data displayed on an organization's revenue statement. Income and profit are calculated according to accrual accounting rules, which smooth out expenses and align revenues with the timing of when products and services are delivered.
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Volatile price changes, technological changes, and government intervention are what type of risks?
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Volatile price changes, technological changes, and government intervention are external risks that can impact a company's operations and performance.
What are Volatile price changesVolatile price changes refer to fluctuations in input or product prices, which can affect profitability and cost structure. Technological changes can introduce advancements or disrupt an industry, requiring companies to adapt to avoid becoming obsolete.
Government intervention, through regulatory changes or policies, can create uncertainties and challenges for companies, affecting operations, costs, and market access.
To mitigate these risks, companies should implement risk management strategies such as diversification, contingency planning, staying informed about market trends, investing in R&D, and engaging with government stakeholders.
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How does a business survive and maintain a profit?
Answers
Answer:
Make sure you don't copy and paste. Have a good day!!!
Explanation:
1. Customers
Find and keep your own customers – you have to be able to solve their real problems & sell yourself effectively.
Too many businesses rely on ‘being in the supply chain’, have too few major customers and do not invest personal time and effort in developing and maintaining customer relations – remember, ‘people buy people’.
Check their credit rating and monitor their speed of payment.
You have not made a sale until they’ve paid the bill. Some customers have bad habits over slow payment; some are big enough to know better. Some will go under before they pay – avoid them.
2. Risks
Assess risks & their potential impact – e.g. customer or supplier closure
Develop contingency plans to mitigate risks
We live in a risky business environment. Don’t assume everything will be OK – look at the potential risks, pitfalls and liabilities for your business and at how you can reduce the biggest risks or anticipate how you will respond if the worst happens.
3. Opportunities
Look for ways to create new value – e.g. new pricing, products & offers to stimulate demand
It often takes longer and costs more than you think to innovate or do anything new.
Use the technology – social media, tablet computing and smartphones are constantly changing the ways we can do business
There are always new opportunities and growing confidence in the economy accelerates these. Many of the most attractive are not in the UK but are international.
Innovation and new approaches can open up promising opportunities but experience tells us that when doing anything new often costs more and takes longer to implement than you first expect, so be prepared to increase your investment of time and money for those new ideas. That means doing your research to find out just how attractive an opportunity it is in the first place.
4. Money in – manage cash and break even
Forecast and monitor your cash flow very closely
Aim to maintain/increase profit margins rather than just increasing sales turnover (bottom line not top line)
Monitor breakeven on the business, customers, products, staff.
Beware of ‘buying’ work at cut-throat margins. Profitable businesses can fail because they run out of money, often suffering from slow payment and lack of credit. Aim to be cash-positive and you will sleep better at night. Break-even is the point at which the business, a person or a contract starts making a profit and is always an important measure.
5. Money out – manage costs and debt
Keep your fixed costs down: avoid costs which are not essential.
Aim to grow sales on a variable cost basis – borrow, rent or lease assets but don’t buy things or hire people you don’t need.
Keep in contact with creditors & lenders to avoid nasty surprises.
Businesses can be wasteful; you don’t need to be. Invest your money only in assets and projects which will provide a strong return. The worst time to ask a lender for more money is when you really need it. Up to date management accounts are essential and you must read them to monitor the health of the business.
6. People
Optimism – positive, realistic leadership with open communications
Set & monitor clear & realistic targets – sales, costs, project completion, debt etc.
Move unproductive people & customers out of the business.
At the end of the day it’s all about how you manage relationships with people. You can tell a lot about a business from the quality of interactions between its managers, employees, customers and suppliers.
Answer:
Explanation:
No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.
g What is the bond equivalent yield of a bond if it has 100 days to maturity, a par value of $10,000, and is currently trading at $9720
Answers
Answer:
10.51%
Explanation:
The computation of the bond equivalent yield is shown below:
Given that
Par value at redemption = $10,000
Bond price = $9,720
Number of days of maturity = 100 days
Now
Profit of holding this bond = Par value at redemption - Bond purchase price
= $10,000 - $9,720
= $280
Now yield from the 100 days
= profit from holding the bond ÷ Purchase price of the bond
= $280÷ $9,720 × 100
= 2.88
Now the yield annualized is
= 2.88 × 365 days ÷ 100 days
= 10.51%
As we go from home operation to international operations, we can potentially receive a _______, but we can also see our ______ increase
Answers
As we go from home operation to international operations, we can potentially receive a rise in our costs, but we can also see our profits increase. This is about business expansion.
What is business expansion?
When a company reaches a certain point in its growth and starts looking for new ways to increase profits, that stage is known as business expansion.
Managing business growth or development is a challenge that successful firms and startups alike eventually encounter.
It is to be noted that while business expansion comes with possible potential increases in profit and net worth, incurring additional costs is a certainty.
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How does the business environment influence the process of Business enterprise in Nigeria.
Answers
Answer:
It affects the decisions, strategies, process and performance of the business.
Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?
A. Increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation.
B. Increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment.
C. Increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation.
D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Answers
Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Explanation:
M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.
From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.
Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
The convenience store Swam Mart, has a beginning inventory of 12 cans of cat food at a cost of $0.85 each. During the year, the store purchased four cans at $.095, six cans at $ 1.05, seven cans at $1.35 and eight cans at $1.50. By the end of the year, 18 cans were sold. Calculate the number of cans in ending inventory, The cost of ending inventory under LIPO, FIFO weighted average
Answers
Answer:
add everything together then divide it by 2
The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:
Answers
Answer: only if the new chef's daily wage is $360 or less.
Explanation:
It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.
The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.
The advantages of cloud computing are security, possible instability, and data control.
t or f
Answers
The advantages of cloud computing are security, possible instability, and data control. True.
What is the meaning of cloud computing?
The distribution of various services, such as data storage, servers, databases, networking, and software, through the Internet is known as cloud computing. Cloud storage has become more and more popular among people who need more storage space and among companies looking for a reliable off-site data backup option.
In order to provide quicker innovation, adaptable resources, and scale economies, cloud computing, in its simplest form, is the supply of computing services via the Internet ("the cloud"), encompassing servers, storage, databases, networking, software, analytics, and intelligence.
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supposes there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen?
Answers
Answer:Suppose there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen? ... Garbage bag supply will decrease. Garbage bag prices will increase.
Explanation:workers at this wage; therefore it would simply create unemployment. b. To help ... There needs to be differences in opportunity costs of producing goods across countries for there ... Suppose we have the following market supply and demand schedules ... Economic profits are zero and firms neither enter nor exit the industry.
Question 7 of 10
Business health insurance plans are
A. required
B. varied
C. non-existent
D. uniform
so
Answers
you can have your cake or chose to eat it
this is example of property rights providing tye right for you to
enjoy property
own property
exclude people from your property
Exchange property
Answers
Answer:
Exclude people from your property
why do you think that the npv method choosen by you is the most suitable method in ecaluating the proposed investment?
Answers
Answer:
Hind Petrochemicals Company
The reason that the NPV method is the most suitable method in evaluating the proposed investment is that
the NPV reduces all the cash outflows and inflows to their present value to assess their relative values vis-a-vis the time value of money.
Explanation:
NPV, therefore, creates a common denominator for project evaluation. If the cash outflows in their present values are more than the cash inflows in their present values, then Hind may need to reconsider its decision to buy the refineries from the government. Using NPV enables Hind Petrochemicals to compute the revenues and costs in their present values and cash flow forms.
Suppose that on any given day the prevailing equilibrium federal funds rate is below the Federal Reserve's federal funds target rate. If the Federal Reserves wishes for the federal funds rate to be permanently at the target level, then the appropriate policy for the Federal Reserve is to take a defensive open market purchase, everything else held constant. True False
Answers
The statement which states that If the Federal Reserve's wishes for the federal funds rate to be permanently at the target level, then the appropriate policy for the Federal Reserve is to take a defensive open market purchase, is TRUE.
Based on the given question, we can see that an open market operation refers to the way the federal government makes the federal funds rate to change buy making the loans more easily obtainable.
With this in mind, if they wish for the federal funds rate to be permanently at the target level, then they would have to take a defensive position by increasing the reserves through buying of securities so that economic activity would be stabilised.
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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
Answers
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. They have been paying another company to manufacture the boxes for them but are interested in manufacturing the boxes themselves. They’ve developed the following cost estimates:
Sales (100,000 units) $ 1,000,000
Costs: Fixed Variable
Raw Materials $ 0 $ 300,000
Direct Labor 0 200,000
Factory Costs 100,000 150,000
Selling and Administrative
Costs 110,000 50,000
Total Costs $ 210,000 $ 700,000
Operating Income $ 90,000
1. How many units will Gay and Joy need to sell to breakeven?
Answers
If Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.
First step is to determine the selling price
Selling price = $1,000,000 / 100,000 units
Selling price = $10
Second step is to determine the Variable cost per unit
Variable cost per unit =$700,000 / 100,000 units
Variable cost per unit = $7
Third step is to calculate the Contribution margin per unit using this formula
Contribution margin per unit = Selling price - Variable cost
Let plug in the formula
Contribution margin per unit = $10 - $7
Contribution margin per unit = $3
Fourth step how many units will Gay and Joy need to sell to breakeven
Using this formula
Break even= Fixed cost / Contribution per unit
Break even = $ 210,000 / $3
Break even =70,000 units
Inconclusion if Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.
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Which examples demonstrate common Sales and Service work environments? Check all that apply.
Tara travels to meet with customers and sell them parts.
Wesley works in an airplane, assisting passengers with their needs.
Audrey works in an office, taking customer orders over the telephone.
Bernard works at a ticket counter in an airport.
Yuk works on a ship, overseeing other workers.
Leo drives a large tractor-trailer truck across long distances.
Answers
Answer:
Option A, B, C and D demonstrate common Sales and Service work environments.
Explanation:
Sales & service work include primarily selling some thing to customers and also assisting the customers in some or the other way.
Of the given set of options, Option A, B, C and D demonstrate common Sales and Service work environments.
Tara sells parts to customer - Sales profile
Wesley assist passenger - hospitality service sector
Audrey takes order on phone - e commerce service sector
Bernard works at ticket counter - Recreational services
In the option E and F, Yuk and Leo are not working in common Sales and Service industry
Answer:
A, C, D
Explanation:
I did it
LLG Co. reports the following data for a recent period: Labor Efficiency Variance $6,000 Favorable Total Labor Cost Variance $12,000 Unfavorable Actual Wage Rate Paid $12 / Hour Standard Wage Rate $11.70 / Hour The actual hours worked during this period was:
Answers
Answer:
Actual Quantity= 60,000 hours
Explanation:
First, we need to calculate the direct labor rate variance and the standards direct labor hours:
Total Labor Cost Variance= efficiency variance + rate variance
-12,000 = 6,000 + rate variance
-18,000= rate variance
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
-18,000= (11.7 - 12)*actual quantity
-18,000 = -0.3*actual quantity
60,000= actual quantity
Carmen wants to determine the profit margin ratio for her company so she can see how much of the company sales is turned into profit. She knows her net profit is $20,000 and her sales are $100,000. How would she calculate the profit margin ratio?
A. Subtract the company’s net profit from the sales
B. Add the company’s net profit and sales together
C. Divide the company’s sales in half and add the net profit
D. Divide the company’s net profit by sales
Answers
To be able to calculate the profit margin ratio, Carmen should D. Divide the company’s net profit by sales.
How to find the profit margin ratio?The profit margin ratio is a financial measure that is used to show the amount of net profit that a company has after it has taken away the expenses from its sales. The higher the profit margin ratio, the better for a company because it shows they are able to make more profit by incurring less expenses.
The formula for the profit margin ratio is simply to divide the net profit by the sales amount.
In this case therefore, the profit margin to Carmen's company is:
= Net profit / Sales amount
= 20, 000 / 100, 000
= 0. 2
= 20 %
This shows that 20 % of the sales is converted to net profit.
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The postal service of St. Vincent, an island in the West Indies, recently introduced a limited edition deluxe souvenir sheet priced at $15.00 each. The initial market response was quite positive, with an increase in unit sales compared to the regular souvenir sheets. The postal service sold a total of 50,000 units of the deluxe souvenir sheet.
Based on the given information, calculate the following:
What was the postal service's increase (decrease) in total contribution margin when it sold 50,000 deluxe souvenir sheets at $15.00 each, compared to selling 80,000 regular souvenir sheets at $8.00 each?
By what percentage did the St. Vincent post office increase the selling price for the deluxe souvenir sheet compared to the regular souvenir sheets? Additionally, calculate the percentage increase in unit sales for the deluxe souvenir sheet compared to the regular souvenir sheets. (Round your answers to one-tenth of a percent.)
If the postal service wants to maintain the same total contribution margin per unit for the deluxe souvenir sheets as it did for the regular souvenir sheets, what selling price should they set for the deluxe souvenir sheet? (Round your answer to the nearest whole dollar.)
Calculate the number of deluxe souvenir sheets the postal service would need to sell at the price determined in question 3 to equal the total contribution margin earned by selling 80,000 regular souvenir sheets at $8.00 each. (Round your answer to the nearest whole number.)
Please show your calculations and provide explanations for each answer.
Answers
1. the postal service experienced an increase in total contribution margin of $7.00
2. The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.
3. The postal service should set the selling price for the deluxe souvenir sheet at $15.00
4. The exact number of deluxe sheets is 45.
Calculation of the increase (decrease) in total contribution margin:
The contribution margin is calculated as the selling price minus the variable cost per unit. Given the information, we have:
Selling price of regular souvenir sheets: $8.00
Selling price of deluxe souvenir sheets: $15.00
Number of regular souvenir sheets sold: 80,000
Number of deluxe souvenir sheets sold: 50,000
To calculate the increase (decrease) in total contribution margin, we need to compare the contribution margin of the two scenarios:
Contribution margin regular souvenir sheets = Selling price - Variable cost
= $8.00 - Variable cost
Contribution margin deluxe souvenir sheets = Selling price - Variable cost
= $15.00 - Variable cost
To find the increase (decrease), we'll subtract the contribution margin of regular souvenir sheets from that of deluxe souvenir sheets:
Increase (decrease) in contribution margin = Contribution margin deluxe - Contribution margin regular
= ($15.00 - Variable cost) - ($8.00 - Variable cost)
= $15.00 - $8.00
= $7.00
So, the postal service experienced an increase in total contribution margin of $7.00 when selling 50,000 deluxe souvenir sheets compared to selling 80,000 regular souvenir sheets.
2. Calculation of the percentage increase in selling price and unit sales:
Percentage increase in selling price = [(Selling price deluxe - Selling price regular) / Selling price regular] * 100
= [(15.00 - 8.00) / 8.00] * 100
= 87.5%
Therefore, the St. Vincent post office increased the selling price for the deluxe souvenir sheet by 87.5% compared to the regular souvenir sheets.
Percentage increase in unit sales = [(Unit sales deluxe - Unit sales regular) / Unit sales regular] * 100
= [(50,000 - 80,000) / 80,000] * 100
= -37.5%
The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.
3. Calculation of the selling price for the deluxe souvenir sheet to maintain the same total contribution margin per unit:
To maintain the same total contribution margin per unit, the selling price for the deluxe souvenir sheet should be equal to the selling price for the regular souvenir sheet plus the increase in contribution margin per unit:
Selling price deluxe = Selling price regular + Increase in contribution margin
= $8.00 + $7.00
= $15.00
So, the postal service should set the selling price for the deluxe souvenir sheet at $15.00 to maintain the same total contribution margin per unit.
4. Calculation of the number of deluxe souvenir sheets to be sold to equal the total contribution margin earned from selling 80,000 regular souvenir sheets:
Total contribution margin from selling regular souvenir sheets = Contribution margin regular * Number of regular sheets sold
= ($8.00 - Variable cost) * 80,000
To calculate the number of deluxe souvenir sheets to be sold, we'll set the total contribution margin equal to that of regular sheets and solve for the number of deluxe sheets:
Contribution margin deluxe * Number of deluxe sheets = Contribution margin regular * Number of regular sheets
($15.00 - Variable cost) * Number of deluxe sheets = ($8.00 - Variable cost) * 80,000
Simplifying the equation:
Number of deluxe sheets = (Contribution margin regular * Number of regular sheets) / (Contribution margin deluxe)
= ($8.00 - Variable cost) * 80,000 / ($15.00 - Variable cost)
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As capital investments flow from high wage Core countries to low wage Periphery regions, _______________________ shifts take place in both (hint: the narrative is that this is MOBILE)
Answers
Answer: Labor
Explanation:
As a result of capital investments flowing, the labor in both the high wage countries and the low wage peripheral regions will shift due to interactions between the two labor systems.
The lower wage peripheral regions for instance, will see a rise in wages paid to their workers on account of the higher capital investment and people from these areas will move to the higher wage countries where they will be paid less which would reduce the wages paid in these higher wage countries.
What is persecution
Answers
Answer:
: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.
Explanation:
For an employee working at a cash register of a convenient store, the arrival rate is
four per hour and the service rate is five per hour. What is the average utilization of
the employee (%)?
20
45
80
125
none of the choices are correct
Answers
Answer:
80
Explanation:
Utilization = arrival rate/service rate
4/5 = 0.8
0.8 as a percentage equals:
0.8*100 =80
80 is the average utilization of the employee. As Utilization = arrival rate/service rate like 4/5 = 0.8. Hence, option C is correct.
What is average utilization?Average Utilization is the result of dividing the daily average total exposure to the revolving facility for the period by the daily average total commitments to the revolving facility for that period to get the amount, expressed as a percentage.
A person can calculate the utilization rate by dividing the number of billable hours by the overall number of hours worked each day.
The basic formula is really simple: divide the total number of billable hours by the total number of available hours (x 100). A worker's utilization rate would be 80% if they invoiced for 32 hours of a 40-hour workweek.
Thus, option C is correct.
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