Cost Volume Profit Analysis Paul buys mattresses for $89 and sells them for $147. He pays $1,200

Fantastic news! We've Found the answer you've been seeking!

Question:

Cost Volume Profit Analysis Paul buys mattresses for $89 and sells them for $147. He pays $1,200 per month to rent his store and $1,100 a month plus a commission of 6% of sales revenue to his sales staff. If Paul sells 300 mattresses this month,

what is his contribution margin? Show your calculations.

Related Book For answer-question

Managerial Accounting An Integrative Approach

ISBN: 9780999500491

2nd Edition

Authors: C J Mcnair Connoly, Kenneth Merchant

See More Books

Posted Date: Mar 18, 2024 10:08 PM

See More Questions

Modern convenience stores realize they have to offer more than late night hours and a diverse product assortment to attract customers they have to change with the times or face extinction. Over the...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
You will analyse the working technology used in three different restaurants typical family restaurants. You need to deduce how the work is done according to the following criteria. You are not...
The largest government expenditure for Japan & the US is... a) military / defense b) transfer payments c) education / healthcare d) infrastructure
Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2016. Mio's salary for 2016 is $190,000. What is Mio's foreign earned income exclusion? (In your...
Tischler the Honey Man (THM) purchases honeycombs from beekeepers for $4.40 per kilogram. THM produces two main products from the honeycombshoney and beeswax. Honey is drained from the honeycombs,...
Design Data sold a piece of machinery to HHB Drafting Company. However, after HHB had taken possession of the machine, it discovered damage and revoked the contract. The court found that the...
On April 6, 2016, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home paid cash...
Please create the model of a library database. Describe the one-to-many relationships in the library database What is the name of the DDL file you exported in step 2.3 Generate DDL ? Create a...
Should dissatisfied consumers have the right to establish gripe sites that use the trademark of the offending company in the domain name? How likely is it that consumers will be confused as to the...
Company has 50 000 stocks. Each stock has a market price of 3 dollars and an expected return of 10%. Company has a debt with a market value of 150 000 dollars. The risk-free rate is 4%. Then: Stock...
An onboarding training program includes the basic information that employees need to understand their new job. Increasingly, onboarding training programs use collaborative meeting and learning...
A stock has a correlation with the market of 0.4. If the Sharpe ratio of the market portfolio is 0.7, what is the Sharpe ratio of the stock? (Hint: algebraically manipulate the SML equation.)
Of the common network communication protocols, which one is a common protocol used in place of Internet Protocol (IP) when persistent connections are not necessary or desirable? Group of answer...
We have three semiannual corporate bonds just issued (the settlement date is 10/16/2023). The bonds pay interests every six months. Bond A : 15-year, 5.5% coupon rate, $1,000 face value Bond B :...
Students conduct the following experiment by placing a selectively permeable dialysis bag in a beaker containing a 5 % solution of fructose (monosaccharide). The dialysis bag contains a 10% solution...
3M Company reports the following financial statement amounts in its 10-K report: a. Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. (Receivables turnover and...
What is customer retention and why is it important to a firm?
Susie Grace runs Grace Deli. She has set monthly sales goals for this year and is now trying to understand how well she is doing. The following table lists the goals by month and actual results....
Ernestos Sub Shop offers six different kinds of sandwiches. Using the data below, perform a simple gap analysis of Ernestos sales. REQUIRED: Perform a simple gap analysis of Ernestos sales. Type of...
Determine the equivalent resistance $R_{\mathrm{eq}}$ for the circuit shown in Figure 6.11. Assume that all resistors have the same resistance of $R$. FIGURE 6.11 Problem 4. R W R3 BA w R ww
Determine the equivalent resistance $R_{\text {eq }}$ for the circuit shown in Figure 6.10. Assume that all resistors have the same resistance of $R$. FIGURE 6.10 Problem 3. W R . WWW R5 w R2 R3...
The output voltage of a voltage divider is not fixed; it varies according to the load. a. Find the output voltage $v_{\mathrm{o}}$ in Figure 6.13 for two different values of load resistance: (1)...

Cost Volume Profit Analysis Paul buys mattresses for $89 and sells them for $147. He pays $1,200

Question:

Expert Answer:

To calculate the contribution margin we need to determine the total revenue and the total variabl... View the full answer

Managerial Accounting An Integrative Approach

Students also viewed these accounting questions