Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,200 units)$155,400Variable expenses 100,800Contribution margin 54,600Fixed expenses 42,400Net operating income$12,200 If the company sells 4,600 units, its total contribution margin should be closest to:
A. $13,362
B. $69,400
C. $59,800
D. $54,600
Answer: C
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Full-line selling is selling an entire line of associated products.
Answer the following statement true (T) or false (F)
Which of the following statements concerning the effect of taxes on a firm's cost of capital is correct?
A. All else equal, an increase in the corporate tax rate will result in a decrease in the firm's weighted average cost of capital. B. For a particular firm, the before-tax cost of debt is less than the after-tax cost of debt because the firm must pay taxes on the interest its bondholders receive. C. A firm's after-tax cost of debt is always greater than its cost of retained earnings. D. Because preferred stock dividends are tax deductible to the firm, its cost of preferred stock is greater than its before-tax cost of debt. E. All else equal, a firm's cost of retained earnings is less than its cost of new common equity because any earnings retained by the firm are not double taxed (i.e., taxed twice) like the dividends that are paid to new common stockholders.
The South Carolina Supreme Court decides the case of Toy Co. v. Umbrella Corp. The court issues an opinion that does not indicate which justice authored it. This opinion is
A. a concurring opinion. B. a dissenting opinion. C. an en banc decision. D. a per curiam opinion.
Fiorina and Glen form HealthFood Inc to coordinate the purchase, sale, and delivery of food products from Idyll Valley Cattle Ranch and other mid-size organic farms to hospitals, universities, and other institutions. HealthFood's stated purpose is to make a profit and to have a material positive impact on society and the environment. HealthFood is A) a nonprofit corporation
B) not a corporation. C) a benefit corporation. D) a private corporation.