Calculation of Percentage Gain
The cost of purchase is $20,000 ($40x 500 shares). The amount used to purchase the shares is
$15,000. The amount that needed to be borrowed is $5,000 ($20,000-$15,000)
(i) At the price of $44
Increase in Equity (Pin Toul Shures) Amount Borrowal
-[(511x500)-55,000
-[$22,000-$5000]
-$17,000
(Increase Equity-Purchase Amount)
Percentage Gain
Purchase Amo
($17,000-$15,000)
$15,000
$2,000
$15,000
0.1333 or 13.33%
Therefore the percentage gain at a price of $44 is 13.33%
At the price of $40
Since the price is unchanged, the equity will remain the same
Therefore the percentage gain at a price of $40 is 0%
At price 536
= [(Price Total Shares)- Amount Borrowed]
Increase in Equity
-[(536x500)-$5,000]
=[$18,000-$5,000]
-$13,000
Percentage Gain
(Increase in Equity-Purchase Amount
Purchase Amount
($13,000-$15,000)
$15,000
-$2,000
$15,000
-0.1333or-13.33%|
Therefore the percentage gain at a price of $36 is -13.33%.
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If jay's fruit stand is able to charge considerably higher prices than other fruit stands with the same produce, it is likely that?
If Jay's Fruit Stand is able to charge significantly higher prices for the same produce than other fruit stands, it is most likely because: there are no fruit stands nearby and Jay has the benefit of location of business.
More about location of business:
The location of a firm favourably influences its ability to attract both a customer base and the calibre of talent necessary to sustain its operations.
The location of a business helps in the development of a brand and image because every city has sections with a reputation, whether it be for simple life or extravagant wealth. Positioning has always been an important factor in business setup.
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In the buying center, ryan answers the phones, receives and opens the mail, and monitors the incoming email. He sorts through all the sales solicitations and forwards the most interesting ones to his boss. Which role is he playing in this decision-making unit?.
In the buying center, Ryan does all the work from answering, forwarding, sales solicitations. The role that he is playing here in the decision-making unit is that of a gatekeeper.
A gatekeeper is a person who filters information before it is distributed to various employees of an organization's decision-making. They gather and process all the data that is sent to them before deciding where and to whom to send it. A coordinated effort like this aids in greater comprehension and makes every employee's tasks much simpler.
A group of people who participate in the decision-making process for obtaining goods and services is known as an organization's decision-making unit (DMU). It may also be known as a company's "buying center." The decision-making unit is essential in B2B because it helps businesses focus on the needs of their target market, learn more about their clients, make better decisions, and save time and money. A gatekeeper is exactly what it sounds like—someone who is posted at a gate to keep off unauthorized guests. It is the duty of the person in charge of deciding who may contact the decision-maker to keep the area free of obtrusive visitors and phone calls.
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Defining and adhering to an organizational mission, evaluating ownership and management alternatives, and outlining the goods/service category to be sold are parts of which element of retail strategy?
Defining and adhering to an organizational mission, evaluating ownership and management alternatives, and outlining the goods/service category to be sold are parts of the situation analysis element of retail strategy.
What do you understand by Retail Strategy?The method you employ to create your goods or services and market them to clients is known as a retail strategy. This strategy consists of several components, including location, store, goods/assortment, visual merchandising, personnel, quality, advertising, and price. Frequently, when we visit a retail location, we find items like gum, chocolates, and other items with smaller SKUs that may be picked up while the customer waits at the checkout counters. The main goal of retail strategies is to boost sales and customer satisfaction equally, so a retail store must have a plan to market its products and services and attract a suitable audience.
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kendall corporation purchased $160,000 of barker company’s 7% bonds at par value that mature in 10 months. the bonds pay interest semiannually on june 1 and december 1. kendall plans to hold the bonds until they mature. the journal entry to record kendall’s purchase of the bonds is:
Barker Company issued $160,000 in 7% bonds with a 10-month maturity that was bought at par by Kendall Corporation. Interest on the bonds is paid twice a year, on June 1 and December 1. Kendall intends to keep the bonds on hand until they are due. Kendall's purchase of the bonds is documented by the following journal entry: debit Short-Term Investments—HTM $160,000; credit Cash, $160,000.
A business transaction is documented in the accounting records of the company using a journal entry. Journal entries are typically made in the main ledger, but they can also be entered in a subsidiary ledger and subsequently rolled forward into the general ledger once they have been summarized. After then, the general ledger is used to produce the company's financial statements.
The logic of a journal entry requires that every business transaction be recorded in at least two places (known as double entry accounting). For instance, when you make a cash sale, both the revenue account and the cash account are increased. Alternately, making purchases on credit leads to an increase in the accounts payable and inventory accounts.
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Why is having a fully funded emergency fund so important when it comes to your financial well-being?.
In the case of an unforeseen financial setback, your emergency fund will protect you and save you from getting into debt.
You are protected by your emergency fund in the event of an unforeseen financial setback, which can help you avoid getting into debt. If you lose your job, are unable to work due to illness, or need to pay for a costly automobile or house repair, it also gives you peace of mind.
You should strengthen your emergency fund for a variety of reasons. Having a sizable emergency fund is crucial if you just have one source of income. When the main breadwinner becomes ill or loses their job unexpectedly, that can help you get by.
A year's worth of spending in your emergency fund is recommended for singles and families with only one income.
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maeleigh finds a new supplement ad online. what is the most important thing she should consider as she is reading this advertisement?
The most important thing maeleigh should consider as she is reading this advertisement is that Who is reporting the information, who conducted the research on the supplement, and who paid for the research to take place.
What do supplements mean?Vitamins, minerals, herbs, amino acids, enzymes, and other compounds taken in a number of forms, such as a pill, gel, capsule, gummy, powder, drink, or food, can all be included in dietary supplements. The most typical examples of this type of supplement are multivitamins, herbal supplements, probiotics, and yes, protein powders and weight reduction pills all come into this category.
A supplement is meant to "supplement" your overall diet by bridging the gap between your regular dietary consumption and nutrient requirements. When there is a greater need for nutrition, supplements, particularly those containing vitamins and minerals, can be helpful. For instance, there is a greater demand for nutrition, vitamins, and minerals during pregnancy, especially folic acid, which helps to avoid birth abnormalities. Some other persons lack particular vitamins or minerals, including iron or vitamin D, or they have malabsorption problems, making it difficult for them to satisfy their nutritional needs.
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When a market is in equilibrium, the quantity of the good that buyers are willing and able to buy ________.
At the equilibrium price, there is no shortage or surplus: The quantity of the good that buyers are willing to buy equals the quantity that sellers are willing to sell.
What is equilibrium price ?
An equilibrium price, also known as a market-clearing price, is the consumer cost given to a product or service at a point where supply and demand are equal or nearly equal. The producer or vendor can sell as many units as they want, and the buyer can buy as many as they want.
Dynamic pricing aims to identify equilibrium prices in response to market changes, modifying prices on the fly when supply and demand fluctuate. Other pricing models, such as value-based pricing, seek to capitalize on intangible attributes or use other strategies to control demand and obtain a bigger profit margin than can be estimated by cost-based pricing.
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what type of contract do you have once the seller has accepted the buyer’s offer in writing and the buyer has been notified of the acceptance?
the agreement that results after the seller accepts the buyer's offer in writing and notifies the buyer of the acceptance.
A purchase agreement is what?
An offer is said to be "under contract" for the purchase of real estate if it has been acknowledged in writing and is signed by both parties. A purchase agreement is the name given to this written document.
In a purchase agreement, the following details are provided:
The parties involved are identified (buyer and seller)
Defining the property legally
Financial information
Purchase cost
purchaser financing
Amount of the down payment
Closing expenses (and how those will be split between the buyer and seller)
Terms and conditions of the sale
contingencies
Conveyed items in the sale (appliances, fixtures, etc.)
Timelines
Durations for contingencies
Offer's cutoff time
the deadline
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Define scope, schedule, cost, and customer satisfaction. why are these considered to be constraints?
Scope defines the limit about how much work can the company do. The schedule refers to the time period. Costs refer to the cost the company has to bear. Customer satisfaction refers to the satisfaction the customer will have by consuming the product. These are considered constraints because there is only a limit to which the company can afford this.
The scope is the limits that the company has to work under. There will be many resources that may be available that the company can make use of but does not. This may be because using those resources it may be outside the scope of the company and the company may not be able to utilize them.
The schedule refers to the period in which the product may be ready for sale by the company. It may also refer to time schedule regarding the working of the employees. These are also constraints as there will be some limits before which the work cannot happen. The cost refers to all the different costs of the company. This may refer to variable cost, fixed cost, opportunity cost, etc.
The company will have to keep these costs into consideration while pricing the product. So in this way, the costs are also considered to be constraints. Customer satisfaction is the fundamental factor that governs the profit and loss of a business. The customer has to be satisfied then only he will buy from us. So there may sometimes be situations when this may not be possible.
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n order to financially support himself, evander either had to select answer working for the military division or needed to select answer unemployment benefits. in order to receive unemployment benefits, evander could not select answer , but instead had to select answer . evander’s company did not select answer him; instead, it allowed him an opportunity to continue working, but for the military division.
Evander had to either between working for the military division or choose unemployment benefits in order to maintain himself financially. Evander was unable to choose a response, but was forced to do so in order to be eligible for unemployment benefits. Evander's employer chose not to respond to him but rather gave him the chance to work again, albeit in the military sector. Thomas had to continue working for the military division or apply for unemployment compensation in order to maintain his financial stability.
When a person is able to work and wants to work but cannot locate a position that suits them, they are considered to be unemployed. A group of unemployed people are referred to as being "unemployed" or are given a numerical value. The definition given by the U.S. Bureau of Labor Statistics is the number of people who are jobless, have actively looked for work over the preceding four weeks, and are available for employment (BLS). The BLS's data on unemployment also includes people who are currently unemployed but are awaiting a call back. The BLS offers information on unemployment in its U-3 report, which is a part of its monthly jobs report. In order to determine unemployment, monthly household surveys known as the Current Population Survey are used (CPS).
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Is best described as a set of goal directed actions a firm takes to gain and sustain superior performance relative to?
Strategy is the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. In any competitive situation, therefore, a good strategy enables a firm to achieve superior performance.
The assumed conception or needs of a function are what constitute job performance in the workplace. Contextual and task performances are the two categories of job performances. While contextual performance is based on personality, task performance is based on cognitive ability. Task completion is related to behavioral roles that are mentioned in job descriptions and pay scales. They are directly tied to organizational performance, as opposed to contextual performances, which are value-based and add extra behavioral roles that are not acknowledged in job descriptions and are compensated; these extra roles are related to organizational performance in an indirect manner. The same collection of individual activity and contributions (prosocial organizational behavior) that promote organizational culture is related to citizenship performance, just as it is with contextual performance.
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A stock with a beta > 1 has returns that are ___________ volatile than the market.
A stock with a beta > 1 has returns that are more volatile than the market.
If beta is more than one, the returns on the enterprise inventory are greater risky than the marketplace go back. An agency inventory with a beta of more than one is referred to as an aggressive stock. If beta is much less than one, the returns on the company inventory are less risky than the market go back.
A stock that swings greater than the market over the years has a beta above 1.0. If a inventory moves much less than the marketplace, the inventory's beta is much less than 1. zero. high-beta shares are purported to be riskier but provide better go back potential; low-beta stocks pose much less threat but additionally decrease returns.
Beta is a statistical measure of the volatility of a inventory versus the general marketplace. A beta above 1 approach a inventory is more volatile than the general market. A beta below 1 way a stock is much less risky than the overall marketplace.
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In the b-to-b market, one strategy is to offer a complete solution to a buyer's problems. this is called?
in the B-to-B market, one strategy is to offer a complete solution to a buyer's problems. This is called A. supplier development.
What is supplier development?Supplier development entails collaboration with these partners in order to enhance the capabilities and competitiveness of significant, strategic, and high-potential suppliers for the joint benefit of the customer and the supplier.
In order to improve a supplier's overall performance or a supplier's capabilities particularly, supplier development can be planned and strategic.
Supplier development goes beyond the parameters of the agreements the company now has with its suppliers. Along with cost savings and improved supplier quality, it may also involve joint product creation between client and supplier organizations.
Finding opportunities for improvement is typically done using SPM, or supplier performance management. SPM must incorporate supplier development in order to go from performance management to performance improvement.
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the contingency approaches explain the relationship between leadership styles and effectiveness in specific situations.
It is TRUE that the contingency approaches explain the relationship between leadership styles and effectiveness in specific situations.
What is contingency approaches ?The contingency approach to management, can as well be described as the situational approach, which explains that there is no single, textbook rule that gives the best way to manage an organization.
It should be noted that this approach made us to understand that “best” approach will be contingent upon the company's internal and external needs.
In conclusion , It is TRUE that the contingency approaches explain the relationship between leadership styles and effectiveness in specific situations.
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Jane is willing to pay $80 for a pair of shoes. the actual price of the shoes is $50. her marginal benefit from the pair of shoes is?
The marginal benefit for Jane is $80. The cost of the shoes is $50 but still Jane is willing to buy them for $80.
The marginal benefit can be described as the maximum amount a person is willing to pay for that additional good or product. The marginal benefit usually reduces with the increase in consumption of the product. Utility can be defined as the satisfaction the person will get by consuming that good or service.
The marginal benefit usually declines when the person buys more of a product. For example, Jane was willing to pay $80 for a pair of shoes. Maybe another pair of shoes of the same kind she will not be willing to spend that much as she already has a pair of shoes. So when the customers keep on buying the same product the marginal benefit will reduce.
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The best way to protect yourself from identity theft is to _____. a. keep your social security card in your purse or wallet b. select a bank that is fdic insured rather than ncua insured c. regularly checking your credit report. d. only purchase items from the internet
Answer: C regularly checking your credit report
Explanation:
The best way to protect yourself from identity theft is to regularly checking your credit report. The correct answer option to this question is (c) regularly checking your credit report.
Identity theft is a malicious digital activity by someone who illegibly acquires your credit card details and uses it for identity fraud like applying for loans, cloning credit cards and buying goods and services. Identity theft is a greater risk when transmitting credit and debit cards information while shopping online. The risks associated with identity theft can be prevented if you are checking your credit report regularly.
A regular checking of credit report can prevent you from identity theft. By this, you have a check on your bank statement and credit card bills. Checking credit report regularly enables you to encounter and report any fraudulent activity immediately. By doing so, you can prevent your credit from a greater loss and damage.
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the primary objective of financial accounting information is to provide useful information about economic activity to:multiple choice
Financial accounting information has the primary objective B. To provide financial statements to help external users analyze and interpret an organization's activities
What is the purpose of financial accounting?Financial accounting allows for the provision of financial statements that give in-depth details about the affairs of a company.
This is made available to external users who are then able to use this information to interpret the activities of the organization and decide on whether to invest or not.
Options include:
A. To serve the decision-making needs of internal usesB. To provide financial statements to help external users analyze and interpret an organization's activitiesC. To monitor and control company activitiesD. To provide information on both the costs and benefits of managing products and servicesE. To know what, when and how much to produceFind out more on financial accounting at https://brainly.com/question/14546386
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When prices are increasing at a rate of 12 percent, the cost of products would double in about how many years?
If prices are increasing at a rate of 12 percent, the cost of products would double in 6 years .
What is Increasing Rate of Products ?
Product pricing increases as a result of a variety of factors, including rising costs, more services, improved quality, and so on. When a corporation decides to raise their rates, we discovered that it is due to one of two factors: either increasing costs or incorrect economics in the first place. The other major issue is taxation.
Taxes cause price increases. Companies who have their act together and run efficient operations will include taxes in their costs, even if they are "below the line." Be assured that if taxes rise, so will consumer prices. When we work with customers to help them become more lucrative, one of our aims is to look at their prices.
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at one point in the evolution of marketing, the united states entered a buyer's market and the customer became king. which era is being described?
This era is being described as market-oriented. Thus, option D is correct.
What is marketing?Marketing can be defined as the way through which the market transaction is being done, in this case, the customer is being made aware of the product or service that is being given to them.
As in recent times, the competition has increased between the business, and the customer has also been more oriented toward what he was he want. This name that the market is being oriented to be a market-oriented where the more the protection the most profit of form of company can get. Therefore, option D is the correct option.
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The question is incomplete, the complete question will be:
Which era is being described?
Select one:
a. economics-oriented
b. value-based marketing
c. production-oriented
d. market-oriented
e. sales-oriented
Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.
Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.
Opportunity costs are the possible advantages which any person or investor or any company forgoes while deciding between the two options.
Opportunity costs are invisible in nature. An opportunity cost is simply by definition is the difference between the expected returns of each option and this is also the formula for doing so.
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For a manufacturer, when indirect labor costs are recorded, the debit entry is to ________.
For a manufacturer, when indirect labor costs are recorded, the debit entry is to Work-In-Process Inventory.
The portion of an employee's salary or wage that is attributable to indirect manufacturing costs is referred to as indirect labor cost. This includes all employment overhead costs, such as social security, fringe benefits, and workers' compensation insurance. It also includes employee time spent on activities related to manufacturing but do not directly produce a finished product. Indirect labor costs may include, for example, time spent on quality control inspections and cleaning machines.
Work-in-process items are goods that are only partially completed. These items are also known as goods-in-process. Some people define work-in-process as products that go from raw materials to finished products in a short period of time. Manufactured goods are an example of a work-in-process.
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a student sells his old computer at a computer hardware store and gets $150 for it. he uses this cash to buy computer accessories.
A student sells his old computer at a computer hardware store and gets $150 for it. he uses this cash to buy computer accessories. This is the Physical asset market.
The physical asset market also called the cash market or the bodily market, the spot market is in which properties are offered for cash and introduced right now. A monetary asset marketplace is a vicinity in which a contractual proper to a certain form of wealth is sold and bought.
An intangible asset is an asset that isn't bodily in nature. Goodwill, emblem reputation, and intellectual belongings, together with patents, emblems, and copyrights, are all intangible assets. Intangible asset exists in opposition to tangible belongings, which encompass land, motors, gadget, and stock.
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Disclaimer:- your question is incomplete, please see below for the complete question.
A student sells his old computer at a computer hardware store and gets $150 for it. He uses this cash to buy computer accessories.
What kind of market is this?
The types of accounts which affect retained earnings are? assets. dividends. revenues. expenses. liabilities.
The types of accounts that affect retained earnings are Dividends, Revenues, and Expenses
Sales represent the income generated by a business operation, while profit represents the net profit after deducting costs from the results. Earnings can take many forms, including B. Sales, Commission Income, and Property Income.
Revenue is the money a business makes from selling its products or services. Cash flow is the net amount of cash flowing in and out of a company. Revenue is a measure of a company's sales and marketing effectiveness, while cash flow is a more liquidity measure. Capital investments are typically his one-time large purchases of fixed assets that are used to generate income over the long term. Income costs are the ongoing operating costs, the short-term costs of running the day-to-day operations of a business.
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at mike’s first meeting with other business unit managers, his boss, jim, goes through the latest production data. mike finds that over the last several months, vendors have complained about problems with some of the yogurt from his line. how should mike respond to this news?
Before making a decision on what to do, Mike should verify these reports to get a better idea of this issue.
Decision makingWe must make decisions every day, and while they might be simple or complex, they are a necessary part of life. But how can we make choices that produce the best results? With an ever-increasing body of research on the subject, decision-making is becoming into a science that can be very helpful in providing direction. The implementation of such research, while unquestionably valuable in some situations, greatly depends on the type of judgments being made, particularly in the corporate world.
There are evident limitations, and the majority of decision-making research to date only pertains to one particular form of decision, which is not the type that managers find to be the most difficult.
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Define a base condition to find the sum of arithmetic progression of the function
Then the method to discover the sum of a mathematics development is Sn = n/2[2a + (n − 1) × d] wherein, a = first term of arithmetic progression, n = variety of phrases within the mathematics progression and d = not unusual difference.
A sequence of numbers is known as an arithmetic progression if the difference among any consecutive terms is usually equal.
There are varieties of mathematics progressions: Finite arithmetic development: The finite arithmetic progression is a series with a finite range of phrases. The primary time period, remaining term, commonplace difference, and the variety of terms may be diagnosed from the collection.
To determine the number of target audience individuals a stadium can preserve. While we take a taxi, we are able to be charged a preliminary cost and then a consistent with mile or kilometer price.
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A shift of the demand curve for thin-crust pizza would not be caused by a change in?
A shift of the demand curve for thin-crust pizza would NOT be caused by a change in the PRICE of thin-crust pizza.
Demand is not determined by price, hence a change in price does not result in a change in demand. Ceteris paribus, if the price of new cars varies, the quantity demanded will change, and the demand curve will alter.
Demand Curve: The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time.
A shift of the demand curve for thin-crust pizza would NOT be caused by a change in the PRICE of thin-crust pizza.
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recall chapter 1's opening story about the british sea captains and the convicted felons. instead of paying the sea captains for each prisoner placed on board the ships in great britain, an economist suggested:'
Paying for each prisoner who walked off the ship in Australia.
What is prisoner ?An Australian television soap opera by the name of Prisoner, which aired on Network Ten (formerly The 0-10 Network) from February 1979 to December 1986, ran for eight seasons and 692 episodes. Prisoner is known in the UK and the US as Prisoner: Cell Block H. If you think prison is horrible for a man, consider what it would be like for a woman, read the tagline of this groundbreaking television series.
Reg Watson came up with the idea for the Grundy Organization-produced show, which was shot both on location and in the former Network Ten Melbourne Studios in Nunawading.
The series developed a cult following across the world and was one of the biggest media exports, performing notably well in the United States and Canada.
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bill wants to reach valuable, relevant audiences and engage with them quickly and often with his ads.
We can actually deduce here that if Bill wants to reach valuable, relevant audiences and engage with them quickly and often with his ads, creating a Display Ads campaign allow him to reach his goal in the following way: It allows him to reach over 90% of global internet users across more than three million apps and websites.
What is advertisement?Advertisement refers to the process of creating awareness for a particular good and service in order to reach the target market.
In our today world of technology, advertisement is evolving and there are different forms that people engage in running advertisement.
The social media platforms are platforms that have become great tools for advertisement.
The complete question is seen below:
Bill wants to reach valuable, relevant audiences and engage with them quickly and often with his ads. How will creating a Display Ads campaign allow him to reach his goal?
A. It allows him to isolate valuable audiences regionally and convert local sales the first time his ad is seen.
B. It allows him to select for new audiences and scale down his advertising to appear on specific websites that he chooses.
C. It allows him to identify valuable audiences and collect statistical usage data from the websites where his ad appears.
D. It allows him to reach over 90% of global internet users across more than three million apps and websites.
Thus, option D is the correct answer.
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The figure shows the labor market. As a result of the minimum wage law of $15 per hour, _____ workers are hired and exactly ____ people are unemployed.
The figure shows the labor market. As a result of the minimum wage law of $15 per hour, 50,000 workers are hired and exactly 2,00,000 people are unemployed. The correct answer is option(b).
The labor market, often known as the job market, is defined as the relationship between supply and demand for labor, wherein employees offer the supply and employers provide the demand. Every economy needs it, and it is tightly related to the markets for capital, products, and services.
The labor market is impacted by almost everything that happens in the economy. changes in the population's size, the minimum wage rate, and the demand for products and services. Because having a job is one of the key determinants of overcoming poverty, labor markets are essential in determining the economic and social development of developing countries. The most effective strategy to increase salaries and consumption levels over the long run is to have a reputable, well-paying job that you can count on.
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The question is incomplete. Check below the full question
The figure shows the labor market. As a result of the minimum wage law of 15 per hour, ___ workers are hired and exactly ___ people are unemployed.
A. 50000/0,
B. 50000/200000,
C. 50000/100000,
D. 150000/50000,
If+sales+are+$814,000,+variable+costs+are+65%+of+sales,+and+operating+income+is+$277,000,+what+is+the+contribution+margin+ratio?
35 % is the contribution margin ratio.
Operating income = $ 271,000
Sales = $ 814,000
Variable costs = 65 % of sales
= 814,000 x 65 %
= $ 529,100
Contribution margin = Sales - Variable costs
= 814,000 - 529,100
= $ 284,900
Contribution margin ratio = Contribution margin / Sales
284,900 / 814,000 =
= 35 %.
The contribution margin ratio (CM ratio) of an enterprise is identical to its sales much less all variable costs, divided with the aid of using its sales. It represents the marginal advantage of manufacturing one extra unit.
The contribution margin ratio is the distinction among a company's income and variable costs, expressed as a percentage. This ratio indicates the quantity of cash to be had to cowl constant costs.
The nearer a contribution margin percent, or ratio, is to 100%, the better. The better the ratio, the extra cash is to be had to cowl the enterprise's overhead expenses, or constant costs. However, it is much more likely that the contribution margin ratio is nicely underneath 100%, and in all likelihood underneath 50%.
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If sales are $814,000, variable costs are 55% of sales, and operating income is $277,000, what is the contribution margin ratio?