The following income statement is provided for Ramirez Company for the current year: Sales revenue (3,500 units × $21.00 per uni
t) $ 73,500 Cost of goods sold (variable; 3,500 units × $9.00 per unit) (31,500 ) Cost of goods sold (fixed) (5,000 ) Gross margin 37,000 Administrative salaries (7,000 ) Depreciation (5,000 ) Supplies (3,500 units × $3.00 per unit) (10,500 ) Net income $ 14,500 What amount was the company's contribution margin?
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 2000 * 0.059 = $118
Total periods (n) = 15
r or YTM = 0.071
The formula to calculate the price of the bonds today is attached.
Customer value refers to the value that our customers assign to the products or services that our company sells them. In other words, is the cost of our product or service offset by the benefits that we receive from consuming it. As long as the equation is always favorable to our side, i.e. perceived benefits > cost of our product, our customers will continue to purchase our products or services.
Customer value marketing tries to continuously increase the customers' perceived benefits, therefore always keeping the equation favorable to our side.
Income <span>will be the same under both variable and absorption costing</span> when there is zero beginning inventory and all inventory units produced are sold.
Variable costing fluctuates based on level of output while adsorption costing is when manufacturing costs are absorbed by the amount produced. When everything is sold and no inventory is being held, both will be zero since there is nothing to sell or have on hand.