10. The income statement for Jeeves Ltd for 2015 is shown below: Sales (100 000 units) $40 000 Variable cost $24 000 Contribution margin $16 000 Fixed costs $12 000 Net Income 5 4000 What is the contribution margin ratio? A 10% В. 30% C. 40% D. 60% 11. What is the difference between total sales in dollars and total variable expenses called ANet operating income B. Net profit C. The gross margin D. The contribution margin 12. How is the margin of safety computed? A Break-even'total sales R Total sulri. Brakuom alm

10. The income statement for Jeeves Ltd for 2015 is shown below: Sales (100 000 units) $40 000 Variable cost $24 000 Contribution margin $16 000 Fixed costs $12 000 Net Income 5 4000 What is the contribution margin ratio? A 10% В. 30% C. 40% D. 60% 11. What is the difference between total sales in dollars and total variable expenses called ANet operating income B. Net profit C. The gross margin D. The contribution margin 12. How is the margin of safety computed? A Break-even'total sales R Total sulri. Brakuom alm

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ieverage is 6 (contribution margin divided by net income), one would e\per net income to increase by 10. I1 sales increase from P400.000 to P450,000, and if the degree of operating a. 75% b. 67% c. 12.5% d. None of these.
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For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…
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