5. Mention two important techniques for a financial analysis Exercise 1: The GAT company makes pants...
5. Mention two important techniques for a financial analysis
Exercise 1: The GAT company makes pants and the costs involved
per unit are the following:
Table 1: Information on unit costs
Description Costs
Direct materials. $ 3.00
Direct work 2.40
Variable general expenses 1.80
Variable marketing expenses 0.80
Total fixed marketing expenses were $ 26,000, while administrative fixed expenses amounted to $ 70,000 for the past year. The price of the pants was $ 20.00 each.
6. How is the contribution margin per unit of Exercise 1
obtained?
7. How do you get the ratio of the contribution margin for Exercise
1?
Homework Answers
Contribution Margin per Unit = Selling price per unit - Variable costs per unit
= 20-3-2.4-1.80-0.80
= $12 per unit
7.Contribution Margin Ratio = Contribution Margin/Sales
= 12/20
= 60%
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5. Mention two important techniques for a financial analysis
Exercise 1: The GAT company makes pants...
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Question 1:
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