Alpha Geek

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Category > Business & Finance Posted 29 Apr 2017 My Price 2.00

Scott Power produces batteries.

9-27    Scott Power produces batteries. Scott has determined its contribution margin to be $2 per battery and its contribution margin ratio to be 0.5. What is the effect on profits of the sale of one additional bat- tery? Of one additional dollar of sales?

 

Answers

Alpha Geek
(8)
Status NEW Posted 29 Apr 2017 07:04 AM My Price 2.00

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file 1493452673-1336268_1_636289869608151249_1336268.xlsx preview (79 words )
9------------27Â----------- Â -----------  -----------Sco-----------tt -----------Pow-----------er -----------pro-----------duc-----------es -----------bat-----------ter-----------ies-----------. S-----------cot-----------t h-----------as -----------det-----------erm-----------ine-----------d i-----------ts -----------con-----------tri-----------but-----------ion----------- ma-----------rgi-----------n t-----------o b-----------e $-----------2 p-----------er -----------bat-----------ter-----------y a-----------nd -----------its----------- co-----------ntr-----------ibu-----------tio-----------n m-----------arg-----------in -----------rat-----------io -----------to -----------be -----------0.5-----------. W-----------hat----------- is----------- th-----------e -----------eff-----------ect----------- on----------- pr-----------ofi-----------ts -----------of -----------the----------- sa-----------le -----------of -----------one----------- ad-----------dit-----------ion-----------al -----------bat------------ t-----------ery-----------? O-----------f o-----------ne -----------add-----------iti-----------ona-----------l d-----------oll-----------ar -----------of -----------sal-----------es?-----------Wit-----------h t-----------he -----------con-----------tri-----------but-----------ion----------- ma-----------rgi-----------n o-----------f $-----------2Pe-----------r b-----------att-----------ery----------- ,O-----------per-----------ati-----------ng -----------Pro-----------fit-----------s w-----------ill----------- in-----------cre-----------ase----------- by----------- $2-----------for----------- ev-----------ery----------- ad-----------dit-----------ion-----------al -----------bat-----------ter-----------y s-----------old----------- . -----------Wit-----------h a----------- co-----------ntr-----------ibu-----------tio-----------n m-----------arg-----------in -----------in -----------rat-----------io -----------of -----------.5 -----------,Op-----------era-----------tin-----------gPr-----------ofi-----------ts
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