If a budgetary weighted average contribution margin (WACM) percentage has been developed with an expected level...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
If a budgetary weighted average contribution margin (WACM) percentage has been developed with an expected level of revenue and a planned fixed cost and the budgetary WACM percentage is in fact achieved in the next (future) time period, could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increase beyond the budgeted levels? Can you explain how losses still might occur even though the planned WACM percentage is being realized in the future time period? If a budgetary weighted average contribution margin (WACM) percentage has been developed with an expected level of revenue and a planned fixed cost and the budgetary WACM percentage is in fact achieved in the next (future) time period, could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increase beyond the budgeted levels? Can you explain how losses still might occur even though the planned WACM percentage is being realized in the future time period?
Expert Answer:
Answer rating: 100% (QA)
The WACM is a profitability metric that considers both the contribution margin of individual products and the sales mix of those productsIt is calcula... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
Posted Date:
Students also viewed these accounting questions
-
12.Write a recursive C function called findMax() that recursively searches two linked lists for the maximum integer. The function returns a pointer to the Node that contains the maximum integer. If...
-
How can educational institutions and corporate entities cultivate inclusive learning and working environments that value and affirm the diverse identities and experiences of all individuals, and what...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A factory with three departments uses a single production overhead absorption rate expressed as a percentage of direct wages cost. It has been suggested that departmental overhead absorption rates...
-
How is descriptive analytics different from traditional reporting?
-
In compliance with a newly enacted state law, Dial County assumed the responsibility of collecting all property taxes for the county, as well as Eton City and Bart Township within the county, as of...
-
This question assumes the following timing. First a loan is made. Then returns are received. Next, monitoring is undertaken to assess the nature of the returns. Finally a report is made based on the...
-
Classify each of Hewlett- Packards costs as one of the six business functions in the value chain. a. Cost of a prime- time TV ad featuring the new HP logo b. Salary of engineers who are redesigning...
-
Agency costs refer to: O the total dividends paid to stockholders over the lifetime of a firm. the costs that result from default and bankruptcy of a firm. O corporate income subject to double...
-
Will your flight get you to your destination on time? The U.S. Bureau of Transportation Statistics reported the percentage of flights that were delayed each month from 1994 through October of 2013....
-
Correct A grocer wants to mix two kinds of nuts. One kind sells for $2.20 per pound, and the other sells for $2.60 per pound. He wants to mix a total of 28 pounds and sell it for $2.40 per pound. How...
-
During the year ended December 31, 2020, Seahawk Ltd. received a government grant of $120,000 for hiring and training costs for the years ending December 31, 2020, 2021, and 2022. The grant...
-
The company currently has outstanding a bond with a 5.5 percent coupon rate and another bond with a 3.5 percent coupon rate. The firm has been informed by its investment banker that bonds of equal...
-
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each) Variable...
-
What fundamental information did you find useful to research (for a commodity of your choice)? Did you use teachnical analysis? Why or why not
-
Sunland Company's trial balance reported the following normal balances at the end of its first year: Cash $18240 Prepaid insurance 670 Accounts receivable 3360 Accounts payable 2690 Notes payable...
-
Alexander Ellington, President of Ellington Foods, has contacted your firm to discuss the company's defined-benefit pension plan. He has provided the following information about the company and its...
-
Phosgene, COCl2, is a toxic gas used in the manufacture of urethane plastics. The gas dissociates at high temperature. At 400oC, the equilibrium constant Kc is 8.05 104. Find the percentage of...
-
Chic Frames Ltd was acquired by Specsavers for $8 million. The fair value of the net assets acquired by Specsavers was assessed at $5 million. Prepare the double-entry transaction that would keep the...
-
Outline six ways to increase cash inflow during periods of cash shortages identified in a cash budget.
-
Part A (a) Explain the advantages and disadvantages of the sole trader form of business structure compared to the partnership form of business structure. 4 marks (b) Summarise the differences between...
-
Lieberman Clothing Company manufactures its own designed and labeled sports attire and sells its products through catalog sales and retail outlets. While Lieberman has for years used activity-based...
-
Alpha-Alpha Inc. produces meat products. Suppose one of the companys plants processes beef cattle into various products. For simplicity, assume that there are only three productssteak, hamburger, and...
-
A cable television network is considering cancelling the program Law and Order because it is watched by only 2.3 percent of the audience in its Monday evening time slot. It would be replaced by...
Study smarter with the SolutionInn App