A company's contribution margin income statement showed net operating income of $9,000 and fixed expenses of $20,000. How much contribution margin did the company earn? a. $29,000 b. $11,000 c. $19,000 d. $14,000
Q: Dan borrowed $994.00 today and is to repay the loan in two equal payments. The first payment is in…
A: Let the equal installments be X.PV= C/(1+r)^nWhere C= Cashflows = X,r= 7%/12Loan taken = 994
Q: Using the Black-Scholes-Merton model, calculate the value of an European call option under the…
A: A European call option is a financial instrument that, on or before a designated expiration date,…
Q: Assume the following exchange rates: Currencies Exchange Rate MXN/USD 0.0470 MXN/JPY 5.2300 JPY/USD…
A: The opening balance is $1,000,000.
Q: Question B4 Using the financial information provided below, calculate the following ratios for 2021:…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Prestige Properties plans to raise $225,000 over a 10-year period so they can purchase a parcel of…
A: Compound = Semiannually = 2Future Value = fv = $225,000Time = t = 10 * 2 = 20Interest Rate = r = 8 /…
Q: Samuel Samosir works for Peregrine Investments in Jakarta, Indonesia. He focuses his time and…
A: We are given the following options on the Singapore dollar:current spot rate is $1.39 /S$The…
Q: Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Rose collected Social Security payments of $220 a month in 1995. If the CPI rose from 90 to 105 from…
A: CPI or Consumer Price Index shows the level of prices in the consumer market. A rise in CPI suggests…
Q: September 30 and December 31 over a 10 year period. Determine X. ect one: ) a. 3118 b. 3157 c. 3137…
A: Present value illustrates the current value of a sum of money that will be received or paid in the…
Q: Project A B . с D E F G Required investment (in millions) $300 400 400 100 100 200 350 Rate of…
A: Excel formula:Solution:
Q: In Geri Co, the 5 year weighted average historical pre-tax economic earnings are $1,250,000. The tax…
A: A business valuation or company valuation involves finding the economic value of a business. A…
Q: A couple plans to retire in 25 years. At that time, they would like to have enough money in an…
A: The objective of this question is to find out the present value of an annuity due, which is the…
Q: Mom's Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old…
A: Project cash flows refer to the estimated cash inflows and outflows associated with a particular…
Q: For his business, Nicholas leased equipment valued at $28,000. The terms of the lease required…
A: Lease is an arrangement by the lessor to hand over an asset to the lessee for a definite term. The…
Q: Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC data.…
A: Wacc = 10%Year: 01234Cash flow: -$900 $300 $320 $340 $360
Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…
A: PV annuity factor at 5% for 40 periods is 17.15909.PV factor at 5% for 40 periods is 0.14205.
Q: Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has…
A: NPV means Net present value.It is a capital budgeting technique used for making decision making…
Q: The current interest rates for 1-year T-strips and 1-year B-rated corporate strips are 3% and 6%,…
A: The marginal Default probability (MDP) = PDt - (1-RR) * PDt-1 / 1- (1-RR) *…
Q: A 30-year mortgage at 4.2 % interest compounded monthly with a monthly payment of $1095.24 has…
A: Monthly payment=$1095.24Period=30yearsInterest rate=4.2% compounded monthly Unpaid balance after 350…
Q: Book for IBM stock. You place a market order to sell 1,400 shares. At what price will you sell the…
A: The bid and ask price is the fundamental idea that captures the dynamics of purchasing and selling…
Q: A company is evaluating two alternatives to produce a new product. The initial cost of Alt Alpha is…
A: Alpha:Initial cost = $160,000Annual maintenance and operation cost = $40,000Salvage value =…
Q: Day 0 1 2 3 Beginning Balance $0.00 Deposits Price $100.00 $99.40 $97.10 $101.10 Gain Ending Balance…
A: Ending Balance = Beginning Balance + Deposits (+/-) Gain/(loss)
Q: Increasing the number of stocks in a portfolio from 10 to 50 would most likely A. Increase the…
A: As the number of stocks in a portfolio increases the correlation between the stocks in the portfolio…
Q: Principal (after down payment) $484,500.00 APR: fixed Discount Points Monthly Payment 5.0% No points…
A: Points are amount paid as a percentage of the loan amount and these are paid to reduce the interest…
Q: What is the Beta of Intrinsic Co.? Probability 0.48 0.35 0.17 a) 1.39 Ob) 1.13 c) 1.00 d)
A: Portfolio beta is a measure of an investment portfolio's overall volatility or systematic risk…
Q: Blue Sky Company just paid a $5 dividend per share to its shareholders. If the required return by…
A: DDM is a dividend discount model based on the value of stock that that can be calculated as the…
Q: t=1/2 you have $1300
A: Initial investment at t=0: $1000Additional investment at t=1/2: $5000Account balance at t=1/2:…
Q: Answer the following time value of money questions assuming the interest rate is 5 percent. a. What…
A: Present Value is the current price of future value which will be received in near future at some…
Q: Suppose that at the present time, one can enter 5-year swaps that exchange LIBOR for 7%. An…
A: There is a difference =(9%-7%) = 2%So on notional principal it is = $30,000,000 * 2% = $600,000.The…
Q: Suppose that a stock is currently trading at £ 38, and that the current prices for European call and…
A: Stock price = 38Call option price = 30Put option price = 35T = 10Annual rate = 4%/100 = 0.040000 in…
Q: can you help me analyze the cash flow statement? for operating, investing, and financing
A: The cash flow statement is one of the financial statements of a company. As the name indicates, this…
Q: QUESTION 8 Morrel University has a small shuttle bus that is in poor mechanical condition. The bus…
A: present value of annuity is computed as follows:-PV= A*wherePV= present value of annuityA= periodic…
Q: Internally generated intangible assets are initially recorded at fair value. O True O False
A: Internally generated intangible assets are initially recorded at cost.These costs include direct…
Q: Find the present value of the following future amount. $500,000 at 11% compounded semiannually for…
A: The present value is the current value of the future cash flows. Present value can be determined by…
Q: Assume the bid rate of an Yen dollar is $ 1.8 while the ask rate is $ 3.5 at Arab Bank.Assume the…
A: The purchase value is $8876.7.The bid rate of an Yen dollar is $3.4 while the ask rate is $5.7 at…
Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…
A: Current Dividend = d0 = $1.4Current Price of Stock = p0 = $36Growth Rate = g = 4.8%
Q: Assume the following: 2,000 SF rentable area, 4-year triple net lease at $18.00 p.s.f. per year,…
A: In the given case, the rent per month per square foot is given which needs to be multiplied with…
Q: 66. ABC Company has projected the following cash flows: Year 1: 85,000 Year 2: 105,000 Year 3:…
A: CF4 = 115,000Ke = 26%g = 2%
Q: A 25-year mortgage of $122,137.51 at 8.7% interest compounded monthly has a monthly payment of…
A: Amount of mortgage = $122,137.10Interest rate = 8.7%Period = 25 yearsWe can compute the required…
Q: Lingenburger Cheese Corporation has 8.3 million shares of common stock outstanding, 305,000 shares…
A: WACC represents the average cost of capital of the corporation and is estimated by taking the sum of…
Q: If the spot rate is $1.36/€ the next day and interest rates remain the same, your profit or loss for…
A: A financial agreement for the purchase or sale of an asset at a fixed future time and price is known…
Q: Which of the following types of businesses would be most attractive to a financial buyer for an LBO?
A: The most attractive business for a financial buyer for an LBO would be the slow growing distribution…
Q: Holding all other things constant, which of the following represe The company sells a machine. The…
A: (I)The company sells a machineWhen a company sells a machine it will receive cash. Hence it will…
Q: Svalbard Swing Company uses the accounting rate of return to evaluate investment projects.…
A:
Q: 1. Basic NPV methods tell us that the value of a project today is NPV0. Time value of money issues…
A: Net Present Value (NPV) is a financial metric crucial for assessing the profitability of an…
Q: Determine m, n, and i for money earning 3.7% compounded semi-annually for 78 months.
A: m= number of compoundings during the yearn =Number of months / 12 months in a year * number of…
Q: Nonsa bought a shop for R120 000. Her estimated cash inflows for the next five years are R15 000,…
A: The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an…
Q: Required: Find the after-tax return to a corporation that buys a share of preferred stock at $46,…
A: The process of assessing the possible risks and returns of different investment opportunities in…
Q: Assume the one period binomial model with initial share price £400, up and down factors u = 1.25, d…
A: The binomial distribution is a discrete probability distribution that characterizes the number of…
Q: An amount of $96,640 was accumulated after 14 years of payments of $4,317.10 at the beginning of…
A: The nominal interest rate is the return rate that an investor can expect from the amount invested…
A company's contribution margin income statement showed net operating income of $9,000 and fixed expenses of $20,000. How much contribution margin did the company earn? a. $29,000 b. $11,000 c. $19,000 d. $14,000 Note to student: See Guidance Answers online.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Consider the following Information for the business Harry's Vintage Records. Actuals from the year ended 31st December 2021; Total Sales Revenue Total Fixed Costs $380,000 $90,000 0.20 Contribution Margin Ratio Calculate Harry's profit or loss in 2021 Select one: O a. (13,000) O b. 11,000 c. 12,000 d. (14,000)B. Considering the following information, please prepare income statements using both traditional and contribution formats Items Amount (Tk.) Sales 7,50,000.00 Direct materials 2,47,000.00 Direct wages 87,000.00 Salary 36,000.00 Factory Rent 40,000.00 Electricity 12,600.00 Depreciation 28,000.00 Insurance 22,000.00 Utilities 27,000.00 Conveyance 24,000.00REQUIRED: Calculate the company's total contribution margin last month. a. P924,000 b. P392,000 c. P882,000 d. P1,274,000
- Calculate the contribution margin of a product for a service company if revenues are $50,000, variable expenses are $30,000, and fixed expenses are $15,000. a.) $ 20,000 b.) $80,000 c.) $35,000 d.) $5,000Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format incomestatement for a recent month for the two games appears below:Claimjumper Makeover TotalSales ............................................ $30,000 $70,000 $100,000Variable expenses ...................... 20,000 50,000 70,000Contribution margin ..................... $10,000 $20,000 30,000Fixed expenses .......................... 24,000Net operating income .................. $ 6,000Required:1. Compute the overall contribution margin (CM) ratio for the company.2. Compute the overall break-even point for the company in sales dollars.3. Verify the overall break-even point for the company by constructing a contribution format incomestatement showing the appropriate levels of sales for the two products.A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
- Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $ $485,168 $ $686,356 Variable expenses 232,804 102,728 Contribution margin 130,532 171,860 430,808 Fixed expenses 87,912 146,396 Operating income 21,597 Income taxes 25,184 21,532 60,859 Net income $15,118 $ $64,596 $182,57720. The following is a summarized income statement of CoolKid Co.'s profit center No. 44 for March: Contribution margin Period expenses: P70,000 Manager's salary Facility depreciation Corporate expense allocation Profit center income P20,000 8,000 (33,000) P37.000 5,000 Which of the following amounts is most likely subject to the control of the profit center's manager? А. P70.000 P50,000 C. P37,000 D. P33,000 B,Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 300,000 $ Sales Beginning merchandise inventory 20,000 $ 200,000 $ $ $ Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 7,000 ? 12,000 $ 15,000 $ 60,000 $ 18,000 Required: 1. Prepare a contribution format income statement.
- Information for number 6 and 7 An offer from the supplier to pay the materials ahead of time is Terms= 3/15, net 30. The materials cost to be purchased amounts $ 50,000. 6. Compute for the cost of the discount 7. If you are the business owner, will you take the discount or pay after the discount?BE2.12 - Using Excel to Calculate Gross Margin and Revenue PROBLEM Bugsy provided the following operating information during the current year. Operating income Selling, general, and administrative costs Cost of goods sold $ 185,000 42,000 77,500 Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. What was Bugsy's gross margin this year? Gross margin What was its total revenue this year? Total revenueUsing the following information. a. Beginning cash balance on March 1, $81,000. b. Cash receipts from sales, $305.000. c. Cash payments for direct materials, $130.000. d. Cash payments for direct labor. $79,000. e. Cash payments for overhead, $38.00. f. Cash payments for sales commissions, $7000 g. Cash payments for interest, $130 (1% of beginning loan balance of $13,000) h. Cash repayment of loan, $13.000. Prepare a cash budget for March for Gado Company. GADO COMPANY Cash Budget March Total cash available Less: Cash payments for Total cash payments $4 Loan activity Loan balance, end of month %24 K Prev earch