answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Allushta
1 month ago
11

Flower Company manufactures and sells a single product that has a positive contribution margin. If the selling price and variabl

e costs both decrease by 5% and fixed costs do not change, then what would be the effect on the contribution margin per unit and the contribution margin ratio?
Business
1 answer:
harina [3.2K]1 month ago
6 0

Answer:

a. The contribution margin per unit will decrease

b. The contribution margin ratio will stay unchanged.

Explanation:

To illustrate this, let's consider:

Unit selling price = $100

Unit variable cost = $60

Thus,

Contribution margin per unit = $40

Contribution margin ratio = $40 / $100 = 0.40, or 40%

<pIf both the selling price and variable costs fall by 5% while fixed costs remain constant, we obtain:

Unit selling price = $100 * 95% = $95

Unit variable cost = $60 * 95% = $57

Contribution margin per unit = $95 - $57 = $38

Contribution margin ratio = $38 / $95 = 0.40, or 40%

Therefore, it can be seen that the contribution per unit declines from $40 to $38, whereas the contribution margin ratio remains constant at 40%.

You might be interested in
If the probability is 0.54 that Stock A will increase in value during the next month and the probability is 0.68 that Stock B wi
marusya05 [3091]

Answer:

The likelihood that neither of the stocks will rise is 0.14.

Explanation:

According to the Complement Rule, the combined probabilities of an event and its complement total 1.

Given the probabilities of Stock A or B increasing, to find the likelihood that neither will happen, we need to consider their complements.

The complement for Stock A =1-0.54=0.46

The complement for Stock B =1-0.68=0.32

To calculate the probability of both events not occurring, we multiply these complements.

The probability that neither of these two events occurs is 0.46 x 0.32 = 0.1472‬

7 0
29 days ago
Which analogy best represents the relationship between jobs and careers?
Scilla [3249]

Response:

A career can be likened to a "building block," whereas a job can be compared to a "castle or a tower"

8 0
16 days ago
Read 2 more answers
What strategies would you recommend that apple pursue in order to assure widespread consumer adoption of apple pay?
soldi70 [3139]

Here are some strategies that Apple should implement to guarantee widespread use of Apple Pay -

i) Encourage more merchants to accept it by educating them and providing devices at low costs

ii) Expand support across various platforms so that users of different devices can access Apple Pay services

iii) Boost visibility by collaborating with additional e-commerce platforms and applications

3 0
21 day ago
The document that lists the steps of the budget process is the
soldi70 [3139]
Data Aggregations
Development Budget
4 0
19 days ago
Which method of analysis does not classify variables as dependent or independent?
soldi70 [3139]

Answer:

C) cluster analysis

Explanation:

Regression analysis. This type of analysis identifies how two variables relate to each other, where one variable (X) is predetermined (dependent) and not random, whereas the second variable (U) is treated as independent and random. The unpredictability of U can arise from two factors: first, the measurement of U, which relies on X, can be subjected to errors; second, U could also be influenced by external factors that are outside of our control, in addition to its dependency on the corresponding X value. In such cases, it's necessary to discuss how the distribution of the random variable U correlates with each value of X. The primary objective of regression analysis is to establish a mathematical model that considers various factors affecting a physical process, making use of experimental data to assess its reliability. The least squares method is commonly applied to evaluate how well the mathematical model aligns with the experimental data.

Discriminant analysis involves a statistical method, commonly applied in pattern recognition and machine learning, to identify a linear combination of features that can delineate or categorize multiple classes or events. This linear combination can function as a classifier and is frequently used to condense data before classification occurs. LDA shares a close relationship with variance analysis (ANOVA) and regression analysis, which relate a dependent variable to other characteristics or dimensions in a linear fashion. However, discriminant analysis uses continuous independent variables to predict a qualitative dependent variable, whereas ANOVA pertains to qualitative independent variables with a continuous dependent variable.

Cluster analysis is aimed at the categorization of multiple items into groups based on shared features. The objects within a single cluster should demonstrate more similarity to each other than to those in different clusters. Clustering represents a key challenge in data analysis and is a frequently utilized method for statistical data evaluation. It finds applications in fields such as machine learning, image analysis, data retrieval, bioinformatics, data compression, and computer graphics.

One-way analysis of variance (ANOVA) assesses the significance of differences among three or more independent means within a normally distributed dataset. It focuses solely on comparing the average values across these groups; ANOVA results indicate significance if at least one of these comparisons shows significance. Its relevance lies in connection to regression analysis, where both dependent and independent variables are established.

6 0
1 month ago
Read 2 more answers
Other questions:
  • Mike is the Director of Human Resources for a 120-employee family-owned manufacturing firm. Mike has been quite busy the last ye
    12·1 answer
  • The ​ S&amp;P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
    15·1 answer
  • Which of the following is a type of machine safeguarding?
    15·2 answers
  • When diseconomies of scale occur, Multiple Choice marginal cost intersects average total cost. the long-run average total cost c
    10·2 answers
  • Future Value (LG5-1) Compute the future value in year 8 of a $4,400 deposit in year 1, and another $3,900 deposit at the end of
    7·1 answer
  • J. Gladwin has a capital balance of $106,000 and R. Selleck has a capital balance of $94,000 in their partnership as of Septembe
    6·1 answer
  • Compare the results of your personal time allocation to your ideal time allocation. Are you close to your ideal allocation? If n
    10·1 answer
  • Describe a "rite of initiation" that you experienced at a place of work. This could be described via a situation in which you be
    10·1 answer
  • óscar’s firm operates in a rapidly changing industry. he often must apply his excellent ________ to assess problems and develop
    9·1 answer
  • Shlomo Benartzi begins his talk by outlining three things that we as a people are not doing well. What are these three things? D
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!