What is the weighted average contribution margin

Assignment Help Financial Management

Reference no: EM131954076

1. Zest Soda, a local convenience store, sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.70 with a variable cost of $0.40. A small drink sells for $1.10 with a variable cost of $0.30. What is the weighted average contribution margin? (Round your intermediate calculations and final answer to two decimal places.)

A. $1.70 per drink

B. $3.40 per drink

C. $1.13 per drink

D. $0.40 per drink

2. The P/E ratio approach to stock valuation is based on:

A) A constant yearly range of P/E ratios and an earnings forecast derived from historical growth patterns and market projections

B) The average yearly P/E ratio relative to the market, a yearly range of P/E ratios, and earnings based on an assumed constant growth rate

C) An increasing yearly range of P/E ratios and an earnings forecast based on the EPS of previous years

D) None of the above

Reference no: EM131954076

Questions Cloud

What is the average accounts payable balance : The accounts payable period is 50.78 days. What is the average accounts payable balance?

Order for traditional economics to work for healthcare : 1. What do consumers need in order for traditional economics to work for healthcare?

What must corporate bonds of similar default risk : what must corporate bonds of a similar default risk offer for the investor to prefer them to municipals?

What is the difference between azotemia and uremia : What is the difference between azotemia and uremia? Will's feelings of weakness and fatigue are symptoms of anemia. Why is he anemic?

What is the weighted average contribution margin : A small drink sells for $1.10 with a variable cost of $0.30. What is the weighted average contribution margin?

Would it matter if the markets were contestable : Would it matter if the markets were contestable? Explain your answers.

How selected factor might impact effects of drug treatments : How your selected factor might impact the effects of drug treatments, as well as measures you might take to help reduce any negative effects.

Budget incidence the poor in south africa : Highlight the mistakes and/or half-truths in each of the following statements. Answers should not exceed 10 lines each.

How much would the tc increase : How much would the TC increase if the order quantity must be 1,000 units? How is JIT (just-in-time) ordering methodology different from EOQ methodology?

User Account

All Pages