Sweet Treats sells ice cream cones for​ $4.25 per customer. Variable costs are​ $1.25 per cone. Fixed costs are​ $3,300 per month. What is the​ company's contribution margin​ ratio?

Answers

Answer 1
Answer:

Answer:

Company's contribution margin​ ratio is 70.59%

Answer 2
Answer:

Final answer:

The contribution margin ratio for Sweet Treats is calculated by subtracting the variable cost per cone from the selling price per cone to get the contribution margin per cone. This is then divided by the selling price per cone to get the Contribution Margin Ratio, which is 70.59%.

Explanation:

To calculate the contribution margin ratio for Sweet Treats, we first need to determine the contribution margin per cone. This is done by subtracting the variable cost per cone ($1.25) from the selling price per cone ($4.25), which gives us a contribution margin of $3.00 per cone.

Then, the Contribution Margin Ratio is calculated by dividing the contribution margin per unit by the selling price per unit. In our case, the selling price per cone is $4.25 and our contribution margin per cone is $3.00. Therefore:

Contribution Margin Ratio = ($3.00/$4.25)×100% =  70.59%.

So, for Sweet Treats, the contribution margin ratio is 70.59%. This means that for each cone sold, 70.59% of the sales price is contributed to covering fixed costs after variable costs have been paid. Once the fixed costs are covered, the remaining amount goes into profit.

Learn more about Contribution Margin Ratio here:

brainly.com/question/29534784

#SPJ3


Related Questions

The following information was available for Paul Company at December 31, 2020: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $968,000; and sales $1,360,000. Paul’s inventory turnover in 2020 wasa21.5 days.b.26.4 days.c.30.2 days.d.33.8 days.
ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs 1.0 hour Hourly wage rate $12 Payroll taxes of wage rate 10% Setup and downtime of actual labor time 20% Cleanup and rest periods 30% of actual labor time Fringe benefits 25% of wage rate a. Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hours per brake repair_____________ b. Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hourly rate __________ c. Determine the standard direct labor cost per brake repair. (Round answer to 2 decimal places, e.g. 1.25.)
There is a possibility of a safety hazard for a manufactured product. As yet, no claim has been made for damages, though there is a reasonable possibility that a claim will be made. If a claim is made, it is probable that damages will be paid and the amount of the loss can be reasonably estimated. This possible loss must be:
Concert Production is planning an appearance of the top band Iggy Wiggy. They plan to buy custom desgined T-shirts to sell at the stadium where the concert will take place. The T-shirt will sell for $25 and the cost per shirt is $8. Previous experience at the Concert Productions suggests that after the concert is over, T-shirts can still be sold, but the selling price will only be $5 per shirt. Based on analysis of previous similar concerts, the company estimates sales of the T-shirt will be 6,000 units. However, the analysis also shows that the standard deviation in similar situations is 800 units.How many Iggy Wiggy T-shirts should the company order?

The County legislature approved its 2020 budget. Revenues from property taxes are estimated to be $800,000. The assessed value of all the property in the county is $40 million. The County has received certificates for property tax exemption of consisting of $3 million for homestead exemptions, $1.3 million for veterans, $700,000 for old age, and $5 million for nonprofits. In addition, the County believes all property taxes will be collectible. What property tax rate per $1,000 of net assessed value must the County charge to collect sufficient property taxes to meet its $800,000 estimate

Answers

Answer:

The property tax rate is $26.67

Explanation:

In this question, first, we have to compute the net assessed value which is shown below:

= Property value - property tax exemption - homestead exemption - veterans - old age - non profits

= $40,000,000 - $3,000,000 - $1,300,000 - $700,000 - $5,000,000

= $30,000,000

Now the property tax equals to

=  (estimated property taxes) ÷ (Net assessed value) × 1000

= ($800,000 ÷ $30,000,000) × 1000

= $26.67

On December 31, Year 3 Snack, Inc. adjusted its records to recognize $5,000 of accrued salaries. Based on this information alone. A.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries expense.
B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
C.the income statement for Year 3 would show $5,000 of accrued salaries payable.
D.the income statement for Year 4 would show $5,000 of accrued salaries expense.

Answers

Answer:

B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.

Explanation:

The adjusting entry to record the accrued salaries as at December 31, Year 3 of the Snack, Ince. are as follows:

                                                   Debit                Credit

Accrued salaries expense        $5,000

Accrued salaries payable                                   $5,000

Based on the above discussion, the answer shall be B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.

 

Final answer:

The balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.

Explanation:

The correct answer is option B: the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable. Accrued salaries are salaries that have been earned by employees but not yet paid. When Snack, Inc. adjusts its records to recognize $5,000 of accrued salaries, it means that they are acknowledging the salaries that have been earned but not yet paid. On the balance sheet, accrued salaries payable is recorded as a liability, representing the amount that the company owes to its employees for the salaries they have earned but have not yet received. Therefore, the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.

Learn more about Accrued Salaries here:

brainly.com/question/31385738

#SPJ3

Broker James has had his license suspended for two years. The licenses of all the broker-associates and salespersons who work for James are

Answers

Available Options Are:

A. Revoked, subject to reinstatement after 30 days.

B. Not affected by the suspension

C. Automatically suspended

D. Placed on inactive status

Answer:

D. Placed on inactive status

Explanation:

The reason is that James was jointly responsible for the actions of his broker-associates and salesperson because they were working under his supervision and that's why now as the license of James has been suspended for 2 years, James is no more jointly accountable for the actions of his associates and salesperson. Hence the licenses of associates and salesperson will be placed on inactive status. To reactive they will have to affiliate themselves to a broker who possesses an active license.

A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this would​ a. ​Make the demand for the product less elastic b. ​Make the customers less sensitive to the price c. ​Assist them with differentiating their product d. ​All of the above

Answers

Answer:

The correct answer is letter "B": ​Make the customers less sensitive to the price.

Explanation:

There are several reasons that could make products become elastic or inelastic. Reputation typically makes goods and services be considered inelastic. These types of products do not see a change in their quantity demanded in front of changes in price.

Thus, if a Swiss watch company promotes their history of superior craftsmanship is attempting to aware consumers about its watch quality and reputation so if they decide to increase prices consumers will be less sensitive to the change.

Baker's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Baker product manager do in order to improve upon the buying criteria, and thus potentially increase demand

Answers

Question options :

Increase MTBF by 2000

Reposition Cake to make it even smaller and higher performing

Increase the promotion budget to gain greater awareness

Lower the selling price since it is the second most important buying criteria

Answer:

Increase the promotion budget to gain greater awareness

Explanation:

In this case, some managers might consider reducing price and may be affecting contribution margin in this way(because selling price/profit is reduced and price- variable cost =contribution margin). While price reduction might be a good strategy to compete in the market, it might not be the best option here. in order to increase demand in a case such as this, the manager should consider increasing product awareness so as to reach more potential buyers and increase market share compared to competitors.

New York City is issuing $500,000,000 of general obligation bonds paying interest on January 1st and July 1st of each year until maturity. The dated date of the issue is May 1, 2020. The first payment will be made on January 1st, 2021. A bondholder purchases the issue at the offering. How many months of interest will the first and second payments cover?a. One month for the first payment; eight months for the second payment b. Two months for the first payment; six months for the second payment c. Six months for the first payment; six months for the second payment d. Eight months for the first payment; six months for the second payment

Answers

Answer:

The correct option is D, eight months for the first payment; six months for the second payment

Explanation:

From the information provided,it is very clear that interest payment would not made until January 1st 2021,which is 8 months after the date of bond issue.

This means that interest due on July 1st 2020 of two months would be paid together with that which becomes due on 1st January 2021 for six months,hence the first interest payment is for 8 months while the next one would the normal six-month cycle.

As a result,it is convincing enough that option D fits the explanation in all respects.

Other Questions