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22. Find the Contribution margin ratio if the selling price per unit is $200, Fixed costs are $765500 and the variable cost per unit is $75.

34. In how many years will $1000 become $1300 at a rate of 5%?
49. If you deposited $40,000 in a bank and earned simple interest at 7 % per annum for two years. Calculate the interest earned at the end of the period.
51. A six-month term deposit at a bank offers a simple interest rate of 3.6% p.a. If a customer earned an interest amount of $75 over a 6 month period, how much did he deposit in the term deposit?

1 Answer

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22. Contribution Margin Ratio is calculated by dividing the contribution margin by sales. The formula to calculate the contribution margin ratio is as follows:

Contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit

Selling price per unit = $200

Variable cost per unit = $75

Contribution margin = Selling price per unit - Variable cost per unit

Contribution margin = $200 - $75

Contribution margin = $125

Contribution margin ratio = ($125 / $200) × 100

Contribution margin ratio = 62.5%

Therefore, the Contribution margin ratio is 62.5%.34.

We are given, Principal (P) = $1000

Rate of Interest (r) = 5% Time period (t) = ?

We need to find the time period (t).

We know that

Simple Interest (SI) = P × r × t / 100

Also,

S.I. = $1300 - $1000 = $300

We will substitute the values of P, r, and SI in the above formula and then we will calculate t.

Thus,300 = 1000 × 5 × t / 1003 = t / 20t = 60/3t = 20 years

Therefore, $1000 will become $1300 at a rate of 5% in 20 years.49.

We are given,

Principal (P) = $40,000 Rate of Interest (r) = 7% Time period (t) = 2 years

We need to find the interest earned (I).

We know that

Simple Interest (SI) = P × r × t / 100

Let's substitute the values in the above formula.

I = P × r × t / 100I = $40,000 × 7 × 2 / 100I = $5,600

Therefore, the interest earned at the end of the period is $5,600.51.

Let the deposit amount be 'P'.

We are given,

Interest rate = 3.6% p.a. Interest earned = $75

We need to find the deposit amount (P).

We know that

Simple Interest (SI) = P × r × t / 100

Where r = Rate of Interest

t = Time period

As the time period is given as 6 months, we need to convert it to years.

Thus, t = 6/12 years = 1/2 years

Let's substitute the values in the above formula and calculate the deposit amount (P).75 = P × 3.6 × 1/100

P = $20,833.33

Therefore, the customer deposited $20,833.33 in the term deposit.

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User Samvel Siradeghyan
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