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1 year ago

If the contribution margin is not sufficient to cover fixed expenses:.

1 answer:

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If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

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On September 1, 2021, Hiker Shoes issued a $106,000, 6-month, noninterest-bearing note. The loan was made by Second Commercial B

Blababa [14]

Answer:

Explanation:

Effective interest rate = [(Interest value of loan / Amount of loan after payment of interest) * (Number of months annually / Number of months notes hold)] * 100

= [($5,830 / $100,170) * (12 / 6)] * 100

= 0.1164 * 100

= 11.64%

Computation the interest value of loan is:

Interest value of loan = Amount of loan * 8 / 12 * Percentage of discount

= ($106,000 * 6/ 12 )* 0.11

= $5,830

Amount of loan after payment of interest = Amount of loan - Interest value of loan

= $106,000 - $5,830

= $100,170

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2 years ago

Mrs. Mulcahy, age 65, is concerned that she may not qualify for enrollment in a Medicare prescription drug plan because, althoug

Kazeer [188]

What should you tell her is: She do not have to enroll under Part B before she enroll in a prescription drug plan.

Medicare prescription drug plan is plan that help to cover all prescribed drugs which means that any person under the plan drugs is covered thereby by saving costs.

Based on the scenario every person who is qualified to Part A or who is enrolled under Part B is qualified to register for Medicare prescription drug plan.

Since she is qualified for Part A, she do not need to register or enroll in Part B before been enrolled in a Medicare prescription drug plan.

Inconclusion What should you tell her is: She do not have to enroll under Part B before she enroll in a prescription drug plan.

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1 year ago

GRUBHUB PERKS GIVE YOU DEALS ON THE FOOD YOU LOVE

Klio2033 [76]

ARNT YOU KOOOOOOL!we live to hear itttt

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2 years ago

Read 2 more answers

Which of the following accurately describes the correlation between task interdependence and team performance?

g100num [7]

Answer: it is moderate and positive.

Explanation:

Task interdependence has to do with the degree to which there's an interaction and reliance on the team members which is vital in the accomplishment of the goals of the organization.

The correlation between task interdependence and the team performance is that it is moderate and positive. Therefore, the correct option is D.

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2 years ago

Colah Company purchased $2,400,000 of Jackson, Inc., 6% bonds at their face amount on July 1, 2021, with interest paid semi-annu

m_a_m_a [10]

Answer:

Dr bonds investment $2,400,000

Cr cash $2,400,000

Dr cash $ 72,000.00

Cr interest revenue $72,000.00

Dr fair value adjustment $ 340,000.00

Cr unrealized gains $340,000.00

2022:

Dr cash $ 72,000.00

Cr interest revenue $72,000.00

Dr realized loss($2,160,000-$2,400,000) $240,000

Cr fair value adjustment $240,000

sale of bonds:

Dr cash $2,160,000

Dr realized loss $240,000

Cr bonds investment $2,400,000

Explanation:

Upon purchase of investment,the bond investments is debited with $2.4 million and cash credited with same amount

Interest revenue for last half year=$2,400,000*6%*6/12=$72,000.00

unrealized gains=$2,740,000-$2,400,000=$340,000.00

Interest for first half of 20222=$2,400,000*6%*6/12=$72,000.00

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2 years ago