5. Key performance measures Measuring Stock Performance An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. To evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what they mean
Answers
Key performance measures are important tools for investors to evaluate the worthiness and prospects of stocks they intend to invest in. These measures include financial ratios, book value, earnings per share, return on equity, and other similar indicators. These measures help investors to understand how a company is performing financially, and its potential for future growth and profitability.
Financial ratios are one of the most common key performance measures used by investors. These ratios compare a company's financial statements to assess its financial health. Examples of financial ratios include price-to-earnings (P/E) ratio, debt-to-equity ratio, and return on investment (ROI) ratio.
Book value is another key performance measure that investors use to assess the worthiness of a stock. It is calculated by subtracting a company's total liabilities from its total assets. The resulting figure gives investors an idea of the company's net worth.
Earnings per share (EPS) is another crucial measure that investors use to determine a company's profitability. It is calculated by dividing the company's net income by its total number of outstanding shares.
Return on equity (ROE) is another important key performance measure that investors use to assess a company's profitability. It is calculated by dividing the company's net income by its total shareholder equity.
In conclusion, understanding how key performance measures are calculated and what they mean is essential for any investor who wants to make informed and prudent investment decisions. By using these measures, investors can evaluate a company's financial health and potential for future growth and profitability, allowing them to make more informed investment decisions.
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Related Questions
Elijah was shopping for a new pair of sunglasses. Although he would have liked to take the sunglasses home immediately after purchasing them, he was willing to give up immediate availability when he realized that he could purchase the sunglasses online for a 30 percent discount. This is an example of using a.
Answers
Answer:
compensatory decision rule
Explanation:
A compensatory decision-making strategy weighs the positive and negative attributes of the considered alternatives and allows for positive attributes to compensate for the negative ones.
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You've completed the gathering point inventory, and you have six checkmarks. How will you use this information?
Answers
You should have number, not checkmarks. You may must return and count the amount of every kind of gathering point.
A gathering point is solely an area of unprocessed items like your email inbox, paper tray or voicemail. It’s an area where items are stored and you haven’t decided yet what to try and do with them. you almost certainly know this idea already but it’s nice to possess a typical name for it, so let’s roll with it. Checkmark = the transaction has been Entered, Verified, marked as Cleared and also the Reconciliation was Completed. Therefore we must always always have numbers, no checkmarks.
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Name the choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing.
Answers
The choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing includes the time, energy, and space
What is the meaning of Choreography?In art, a choreography means the way in which an idea is expressed physically through dance. When developing this concept, the users usually relies on important principles of organization to ensure that the idea takes a clear, appropriate, and aesthetically pleasing form.
These are principles that comprises the basic ingredients for the dancers' movements and patterns and help the choreographer utilize space, express intention and the music, and organize the dancers.
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corporation meaning in simple terms
Answers
Answer: A corporation is a legal entity that is separate and distinct from its owners.
Hope this helps, make brainliest c:
Which point in the business cycle offers the greatest opportunity for a business? Explain.
Answers
Answer:
Peak
Explanation:
The peak is the business cycle with the highest growth rate. The economy is operating and its full potential. The demand for goods and services is high, which results in high sales and high income for businesses.
The peak presents the best opportunities for business. A firm makes optimal use of its resources. It experiences high sales and incomes, which is a good opportunity to expand or offer good returns to investors.
NEED HELP!
-The single country with the world's largest GDP is______.
-The member countries of the European Union have about the same GDP as_____.
-Together, these four countries and the European Union have ______ half of the world's total GDP.
.
Answers
Answer:
The single country with the world's largest GDP is the US.The member countries of the European Union have about the same GDP as the US.Together, these four countries and the European Union have more than half of the world's total GDP.✿---✿--❀---❀---✿---✿
hope it helps...
have a great day!!
free cash flow is defined as total operating cash flow after taxes less the reinvestment in operating assets that is required to maintain the firms growth rate
Answers
Free cash flow can be defined as the cash flow of the company that is available after the company has made the capital expenditure required to maintain or expand its asset base.
It is the cash that is left after a company has paid all of its expenses and has reinvested back into its own operations.The formula for free cash flow is: Free cash flow = operating cash flow - capital expenditures.The calculation of free cash flow is important as it provides a measure of the company's ability to generate cash in excess of its capital expenditure needs.
It can also be used to determine whether a company has enough cash to cover its expenses and debts in the short-term and to invest in long-term growth prospects. In addition, it can help investors to determine the value of a company by looking at how much free cash flow it generates over time.In conclusion, the formula for free cash flow is important for investors and companies to understand, as it provides a measure of a company's ability to generate cash that is available for distribution to shareholders, debt repayment, and investment in future growth. As a result, it is important to calculate free cash flow on a regular basis and to monitor it closely to ensure that the company is able to meet its financial obligations and to pursue its strategic objectives.
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Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In choosing her optimal output, farmer Jones should:
Answers
Answer:
sell more
Explanation:
A market penetration strategy requires:
a. development of a highly innovative product offering.
b. entry to a new geographic market.
c. lesser marketing efforts.
d. reduced spending on advertising.
e. intensified distribution efforts in existing markets.
Answers
A market penetration strategy requires intensified distribution efforts in existing markets. Option E is correct.
A market penetration strategy involves increasing market share for a product or service within existing markets. It focuses on intensifying distribution efforts in existing markets to reach more customers and gain a larger share of the market. This strategy does not require the development of a highly innovative product offering or entry to a new geographic market.
Option c, "lesser marketing efforts," is not accurate. A market penetration strategy actually requires increased marketing efforts to promote the product or service to a wider audience.
Option d, "reduced spending on advertising," is also not accurate. A market penetration strategy typically involves investing more in advertising and promotional activities to attract new customers and increase sales.
Therefore, the correct answer is option e, "intensified distribution efforts in existing markets." This involves expanding distribution channels, improving product availability, and reaching out to new customer segments within the existing market to increase market share.
Therefore, Option E is correct.
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The epicurean society is holding its annual election for president. The three candidates are a, b, and
c. Twenty percent of the voters like upper c the most and upper a the least. Forty percent of the voters like upper a the most and upper c the least. Of the remaining 232 prefer upper b to upper c and upper c to upper a, and 696 prefer upper b to upper a and upper a to upper
c. Write out the preference schedule for this election.
Answers
Answer and Explanation:
Please find answer and explanation attached
The economic principle that people are motivated by something to take a particular course of action.
a. Costs vs. Benefits
b. Incentives Matter
c. Future Consequences Count
d. Markets Coordinate Trade
Answers
Costs vs. Benefits is the economic principle that people are motivated by something to take a particular course of action. Hence, option A is correct.
What is Breakeven analysis?A financial accounting method or technique called breakeven analysis is used to calculate the number of units a business needs to sell at a given price in order to cover all of its costs.
It is a notion that enables entrepreneurs or financial professionals to figure out and know what they must sell either monthly or annually in order to be able to meet the costs of operating the firm.
Thus, option A is correct.
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23. Estelle Petkins put her summer cottage up for sale. Edith Ong , who was interested in buying the cottage , asked if it had termites Petkins was not aware of a termite problem so her answer was no. Ong bought the cottage and later found termites Does Ong have any recourse against Petkins for fraud ? Explain your answer .
Answers
Whether or not Edith Ong has any recourse against Estelle Petkins for fraud would depend on the specific circumstances and laws of the jurisdiction where the cottage is located.
How can this fraud liability be proven?Generally speaking, if Petkins had no knowledge of a termite problem and did not make any false statements with the intention of deceiving Ong, she would not be liable for fraud.
In most jurisdictions, a seller of real estate has a duty to disclose known defects or problems with the property, but only if the seller has actual knowledge of such defects. If Petkins did not have actual knowledge of a termite problem, she would not have been under any legal obligation to disclose it.
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The greater the degree of economic integration between markets in the home country and the base country:
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The degree of economic integration between markets in the home country and the base country can have a significant impact on various aspects of the economy, including trade, investment, and overall economic growth.
If the degree of economic integration is high, it means that there are fewer barriers to trade and investment between the two countries. This can lead to increased trade flows, greater investment opportunities, and increased economic cooperation between the two countries. However, the degree of economic integration can also have negative consequences. For example, if the home country and base country are heavily reliant on each other for trade and investment, economic shocks in one country could have ripple effects in the other country, leading to instability and economic volatility.
In general, the greater the degree of economic integration between markets in the home country and the base country, the more important it becomes to closely monitor economic indicators and trends in both countries to ensure that any potential risks or imbalances are identified and addressed in a timely manner.
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in a transaction-processing system, ________ insures that transactions, once completed, cannot be undone.
Answers
In a transaction-processing system, "commit" insures that transactions, once completed, cannot be undone. A transaction processing system (TPS) is a type of information processing system.
It is used to capture, process, and store transactions associated with business operations.
The term "transaction" refers to any business activity that alters a firm's financial condition, such as depositing or withdrawing funds from a bank account, purchasing goods or services, or altering inventory levels.Transaction processing is the primary function of a TPS. It is a system that records transactions as they occur, providing timely and accurate information about the company's business operations. The accuracy and reliability of the data in a TPS are critical because other systems rely on it.
The following are some of the characteristics of a TPS:
Reliability: A TPS must be dependable, providing accurate information that can be used to make decisions. It must also be accessible to users who require information in a timely manner.
Accuracy: A TPS must be precise, capturing transactions and creating reports that are free of errors.
Timeliness: A TPS must be fast, capturing transactions in real-time and providing timely information when required.
Performance: A TPS must be capable of handling a large volume of transactions at any given time.
It must also be scalable, allowing it to handle additional transactions as the business grows.
Security: A TPS must be secure, preventing unauthorized access to data or transactions. It should also be auditable, allowing managers to monitor the system and ensure that it is working properly.
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Question 32
What is the best divisional structure when a few major customers
are of paramount importance and many
different services are provided to these customers?
• By cost
O By customer
• By product
• By geographic area
• By process
Answers
By customer is the best choice when a company has a few major customers that are of paramount importance and provides a variety of services to these customers.
Option b is correct.
When a company has a few major customers that are of paramount importance and it provides a variety of services to these customers, the best divisional structure would be a divisional structure by customer. This is because this type of structure focuses on serving specific customer groups, which aligns well with the company's goal of providing excellent service to its major customers.
A divisional structure by customer involves dividing the company into different units or divisions that are responsible for serving specific customer groups. Each division operates as a separate entity within the company and has its own resources and personnel. This allows each division to focus on meeting the unique needs of its specific customer group, which can result in increased customer satisfaction and loyalty.
Overall, a divisional structure This type of structure allows the company to focus on meeting the unique needs of each customer group, which can result in increased customer satisfaction, loyalty, and ultimately, revenue.
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What+is+the+value+of+a+perpetual+bond+with+a+par+value+of+$1,000+and+a+coupon+rate+of+9%+(semiannual+coupon)?+the+bond+has+a+yield+to+maturity+of+6.40%.+group+of+answer+choices
Answers
The value of a perpetual bond with a par value of $1,000 and a semiannual coupon rate of 9% at a yield to maturity of 6.40% is approximately $1,116.67.
To calculate the value of a perpetual bond, we need to use the formula for the present value of a perpetuity. The present value of a perpetuity is equal to the annual coupon payment divided by the yield to maturity. In this case, the annual coupon payment is $1,000 * 9% = $90. Since the coupon is paid semiannually, the semiannual coupon payment is $90 / 2 = $45. The yield to maturity is 6.40%, which can be converted to a semiannual yield of 6.40% / 2 = 3.20%. Therefore, the value of the perpetual bond can be calculated as $45 / 3.20% = $1,406.25. However, since the bond has a par value of $1,000, we need to discount the value by the perpetuity factor of $1,000 / $1,406.25 = 0.7107. Therefore, the value of the perpetual bond is approximately $1,406.25 * 0.7107 = $1,116.67.
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Corey, the chief financial officer of Maurectric Inc., an electronics company, is also an investor in the stockmarket. As the shareholder of various other companies, he attends the Annual General Meetings of thosecompanies. This helps him study the financials and financial strategies followed by other companies in the sameindustry. In the context of managerial roles, which of the following roles does Corey illustrate in this scenario?
a. The leader role
b. The liaison role
c. The disseminator role
d. The figurehead role
Answers
Answer:
The liaison role
Explanation:
From the question we are informed about Corey, the chief financial officer of Maurectric Inc., who is an electronics company, is also an investor in the stockmarket. As the shareholder of various other companies, he attends the Annual General Meetings of thosecompanies. This helps him study the financials and financial strategies followed by other companies in the sameindustry. In the context of managerial roles,in this case, the roles does Corey illustrate in this scenario is
liaison role.
A liaison role can be regarded as role that is been played by person for liaison in between two firms or two particular organizations so that he/she can communicate as well as coordinating their activities through his/her service as as an official go-between carrying out this role to senior officials of both organizations.. liaison officer should always attends the organization key meetings.
Why is it important for a human resource manager to carefully maintain
employee records?
Answers
Answer:
Certain records require employee privacy to be protected. Not maintaining and following best practices for employee record keeping leaves you vulnerable to defending yourself against lawsuits, labor investigations or audits.
Explanation:
tell me a story that has happened to you who evers is best i’ll give you point or whatever
Answers
Explanation:
Soo- one time i was in mexico, snorkeling :D
and my dad surprised me with something i didn't expect. a banana. at first i was verrrrrry annoyed, i thought i would've gotten some new gear or stuff. out of nowhere, he takes the bananas out of his pocket and pushes me and my siblings in the water. he chucks a banana at me and i get salt in my eyes, screaming in pain because i hadn't put my goggles on. we swam out to sea, the banana absorbing the salt water. then- the last thing i would expect happened. A SEA TURTLE SNAPPED IT OUT OF MY HANDS LOL
i hope u enjoyed my story :D
influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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What are the 3 approaches to working capital management?
Answers
The three approaches to working capital management are the conservative approach, the aggressive approach, and the matching approach.
A conservative approach involves maintaining a high level of liquidity that allows the business to take advantage of any sudden changes in the market. An aggressive approach involves taking more risk to increase investment returns, such as investing in high-risk, high-return assets. The matching approach involves managing working capital to match the cash flow of the business so that the company can meet its obligations on time. All of these approaches can help a business manage its working capital and ensure it has the resources it needs to meet its financial goals.
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You have just purchased a new warehouse. To finance the purchase, you've arranged for a 34 -year mortgage loan for 70 percent of the $3,340,000 purchase price. The monthly payment on this loan will be $16,700.
Requirement 1: What is the APR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. G. , 32. 16). )
Requirement 2: What is the EAR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e. G. , 32. 16). )
Answers
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 34 -year mortgage loan for 70 percent of the $3,340,000 purchase price. The monthly payment on this loan will be $16,700. The APR on this loan is 583.44%, The EAR on this loan is 73.15%.
To calculate the APR (Annual Percentage Rate) on this loan, we need to use the formula for APR:
APR = (2 * Monthly Payment * Number of Payments / Loan Amount) * 100
Given that the monthly payment is $16,700, the number of payments is
34 years * 12 months = 408 months,
and the loan amount is 70% of $3,340,000, which is $2,338,000,
we can calculate the APR as follows:
APR = (2 * $16,700 * 408 / $2,338,000) * 100
Simplifying this expression, we find:
APR = (2 * $16,700 * 408) / $2,338,000 * 100
APR = (33,400 * 408) / $2,338,000 * 100
APR = $13,651,200 / $2,338,000 * 100
APR = 583.44
To calculate the EAR (Effective Annual Rate) on this loan, we can use the following formula:
EAR = (1 + APR / n)^n - 1
Where APR is the Annual Percentage Rate and n is the number of compounding periods per year. Since the loan is paid monthly, n will be 12.
Plugging in the APR of 583.44% and n = 12 into the formula, we get:
EAR = (1 + 583.44% / 12)^12 - 1
Calculating this expression, we find:
EAR = (1 + 0.04862)^12 - 1
EAR = (1.04862)^12 - 1
EAR = 1.7315 - 1
EAR = 0.7315
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Which of these is an example of negligence?
O A. A young girl pulls another young girl's hair.
• B. An elderly woman gets knocked over when someone tries to steal
her purse.
• C. A custodian leaves a broom on the floor and a visitor trips over it.
O D. A company falsely accuses another company of using fake
products.
SUBMIT
Answers
Answer:
is d A company falsely accuses another company of using fake
Recommend ONE strategy a manager could implement to reconcile the conflicting interests of the business with society.
Answers
One strategy a manager could implement to reconcile the conflicting interests of the business with society is to adopt a Corporate Social Responsibility (CSR) approach.
What is a Corporate Social Responsibility (CSR)?One way a manager could implement CSR is by identifying the key stakeholders of the business, including employees, customers, suppliers, communities, and the environment. By considering the needs and interests of these stakeholders in the company's decision-making processes, the business can strive to create value for all stakeholders, rather than just maximizing profits for shareholders.
Additionally, the manager could implement sustainability initiatives, such as reducing the company's carbon footprint, promoting ethical sourcing and production practices, and supporting local communities through charitable donations or volunteerism.
By adopting a CSR approach, the manager can help to create a more sustainable and equitable business model that considers the interests of both the business and society.
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yall anyone give me a mission statement to use please !!!!!
Answers
Answer:
need to know what its about?
Explanation:
If the price of guitar amplifiers increases, ceteris paribus, at the new price, consumer surplus for electric guitars falls. False True
Answers
True. An increase in the price of guitar amplifiers leads to a decrease in consumer surplus for electric guitars.
True. Ceteris paribus, if the price of guitar amplifiers rises, the new higher price will result in a decline in consumer surplus for electric guitars (presuming all other factors stay the same).
The difference between the utmost price a consumer is prepared to pay for a product and the price they actually pay is known as the consumer surplus. Consumers are less likely to spend more for electric guitars when the price of associated goods like guitar amplifiers rises. The consumer surplus declines as a result.
As the cost of buying both goods rises, higher prices for guitar amplifiers may cause a decline in demand for electric guitars.
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a canadian broker-dealer has some clients who move to florida for the winter. the agent who services their accounts wants to be able to contact them when they are in florida. which statement is true?
Answers
This statement is True: Some of the clientele of a Canadian broker-dealer relocate to Florida during the winter.
What does a broker-dealer do?Since State B has retail clients, a regional broker-dealer would have to register there as a broker-dealer. A broker-dealer (B-D) is an individual or company who trades securities for their own account or on behalf of their customers.
Since the majority of stock brokerages function as both agents and principals, the term "broker-dealer" is used to define them in terms of U.S. securities laws. A broker/dealer is a business that manages securities for insurance firms as well as connects buyers and sellers of insurance.
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In order to leverage social media ads, where you choose to advertise your product/service should also be based on your target audience and what is __________ amongst that audience.
Answers
In order to leverage social media ads, where you choose to advertise your product/service should also be based on your target audience and what is relevant and engaging to them.
By analyzing their demographics, interests, and online behaviors, you can identify the social media platforms or channels that align with their preferences. This ensures that your ads are seen by the right people, in the right context, maximizing their relevance and impact.
Additionally, staying attuned to trending topics, popular hashtags, and viral content within your target audience's online communities allows you to tap into what is currently captivating their attention.
By combining audience insights with relevant content, you can create compelling ad campaigns that drive engagement, increase brand visibility, and ultimately yield positive results.
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Which three characteristics help identify a business opportunity? (Choose three)
Select 3 correct answer(s)
Branding
Quality
Price
Service
Marketing
Size
Answers
Marketing, Size, and Quality are the three characteristics that help identify a business opportunity. The correct options are B, E, and F.
How do entrepreneurs identify business opportunities?When entrepreneurs look for opportunities in existing markets, they find them. This implies that they are aware of technological, economic, and social trends. They observe changes in their professional or personal environment and events. They communicate with others in their network.
Firms can survive, thrive, and remain competitive in their markets by continuously identifying and exploiting new opportunities. When this is widespread, the entire economy benefits from long-term growth.
Thus, the ideal selections are options B, E, and F.
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Answer: Marketing, Size, and Quality
Explanation: I got it right on a test
for a recent year, wicker company-owned restaurants had the following sales and expenses (in millions): sales $16,000 food and packaging $4,360 payroll 4,000 occupancy (rent, depreciation, etc.) 4,860 general, selling, and administrative expenses 2,300 $15,520 income from operations $480 assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. a. what is wicker company's contribution margin? round to the nearest million. (give answer in millions of dollars.) $fill in the blank 1 6,720 million b. what is wicker company's contribution margin ratio? round your answer to one decimal place. fill in the blank 2 42 % c. how much would income from operations increase if same-store sales increased by $1,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? round your answer to the closest million. $fill in the blank 3 million feedback area feedback
Answers
If same-store sales increased by $1,000 million with no change in contribution margin ratio or fixed costs, income from operations would decrease by $3,100 million.
a. To calculate the contribution margin, we need to first determine the total variable costs.
From the given information, we know that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
Variable costs = Food and packaging + Payroll + 40% of General, selling, and administrative expenses
Variable costs = $4,360 + $4,000 + ($2,300 x 0.4)
Variable costs = $4,360 + $4,000 + $920
Variable costs = $9,280 million
Contribution margin = Sales - Variable costs
Contribution margin = $16,000 - $9,280
Contribution margin = $6,720 million
Therefore, the contribution margin for Wicker Company is $6,720 million.
b. The contribution margin ratio is the contribution margin as a percentage of sales.
To calculate the contribution margin ratio, we can use the following formula:
Contribution margin ratio = (Contribution margin / Sales) x 100%
Contribution margin ratio = ($6,720 million / $16,000 million) x 100%
Contribution margin ratio = 42%
Therefore, Wicker Company's contribution margin ratio is 42%.
c. To calculate how much income from operations would increase with a $1,000 million increase in same-store sales, we need to use the following formula:
Income from operations = (Contribution margin ratio x Sales) - Fixed costs
We are assuming that the contribution margin ratio and fixed costs remain the same. We already know the contribution margin ratio from part b, and we can calculate the fixed costs as follows:
Fixed costs = Payroll + Occupancy + 60% of General, selling, and administrative expenses
Fixed costs = $4,000 + $4,860 + ($2,300 x 0.6)
Fixed costs = $4,000 + $4,860 + $1,380
Fixed costs = $10,240 million
Now we can plug in the numbers to calculate the new income from operations:
Income from operations = (42% x ($16,000 + $1,000) million) - $10,240 million
Income from operations = (0.42 x $17,000 million) - $10,240 million
Income from operations = $7,140 million - $10,240 million
Income from operations = -$3,100 million
Therefore, if same-store sales increased by $1,000 million with no change in contribution margin ratio or fixed costs, income from operations would decrease by $3,100 million.
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