# Novak Imports is a merchandising Firm. Last year they reported sales of \$677000 and cost of goods sold of \$405100. The company's total variable selling and administrative expense was \$60750, and fixed selling and administrative expense was \$54350. The total contribution margin for the firm is:

Contribution margin = \$211,150

Contribution margin ratio = 31.19%

Explanation:

total sales revenue                                   \$677,000

variable costs:

• Cost of goods sold \$405,100
• S&A expenses \$60,750                 (\$465,850)

Contribution margin                                    \$211,150

Fixed expenses                                         (\$54,350)

Operating income                                     \$156,800

Contribution margin ratio = \$211,150 / \$677,000 = 31.19%

## Related Questions

Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of \$102 for the dress:
Store Travel Time Each Way Price of a Dress
(Minutes) (Dollars per dress)
Local Department Store 15 102
Across Town 30 87
Neighboring City 60 63
Juanita makes \$58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her \$58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Suit Total Cost
(Dollars) (Dollars per suit) (Dollars)
Local Department Store 103
Across Town 88
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

1. The opportunity cost and total cost table is shown in the attached image below. 2.  Juanita will minimize the cost of the dress if she buys it from the: Neighboring City.

The value of the next best alternative foregone when a decision is made to opt for resources like time, money, or effort to a certain option is known as opportunity cost. In other words, it is the cost of choosing one choice over another while considering the benefits and drawbacks of both options.

As there are only so many resources available, selecting one choice frequently implies forgoing its advantages. It's a manner of approaching decision-making that considers both the advantages and disadvantages of various options

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The complete question might be:

Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of \$103 for the dress: Juanita makes \$16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her \$16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.

1.Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.

2. Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the :______.

Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Which of the following are plausible as a result of this increase in the sales tax. Is this plausible? Explain.

Explanation:

Here is the complete question:

Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Is this plausible? Explain.

From the question, we are told that the state increases its sales tax from 5 percent to 6 percent and the state revenue commissioner predicted that a 20 percent increase in the sales tax revenue due to the increase in sales tax.

This is not plausible, when the sales tax increases from from 5 percent to 6 percent, this will lead to an increase in the prices of the goods. According to the law of demand, the higher the price of goods and services, the lower will be the demand for the good. So, in this case, due to the increase in sales tax, it may prompt the consumers to reduce their spending.

Therefore, a 20 percent increase in the sales tax revenue is not plausible. Even if there will be an increase in the sales tax revenue, it won't be up to 20 percent.

What is persecution

: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.

Explanation:

Hostility and ill treatment especially because of race or political or religious beliefs; oppression

ssume the following information: Variable cost ratio 80% Total fixed costs \$60,000 What is the volume of sales dollars required to break even

Break-even point (dollars)= \$300,000

Explanation:

Giving the following information:

Variable cost ratio 80%

Total fixed costs \$60,000

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= 1 - 0.8= 0.2

Break-even point (dollars)= 60,000 / 0.2

Break-even point (dollars)= \$300,000

The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)

Operating Activity

Explanation:

The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.

Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be added back.

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of \$500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 25%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at \$18,000 per ton, what will be the increase in revenue next year from the new equipment?A) \$837,500
B) \$303,750
C) \$125,000
D) \$337,500

Explanation:

Giving the following information:

New injection molding equipment for a cost of \$500,000.

Increase in sales of 25%.

The manufacturer currently makes 75 tons of clothespins per year, which sell at \$18,000 per ton.

First, we need to calculate the new sales level:

New sales (units)= 75t* 1.25= 93.75 tons

Increase in sales (dollars)= (93.75 - 75)*18,000= \$337,500