Margins

8.You purchased 100 shares of ABC common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. A) $21 B) $50 C) $49 D) $80 E) none of the above 9.You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend. What would your rate of return

Excel Assignment #2 Preparing a Contribution Margin Income Statement and Operating Leverage Summer 2013 1. Assume that a company is budgeting to sell 2,500 units of a product at a selling price per unit of $32. The variable cost per unit is $26 and total fixed costs are $5,000. REQUIRED Prepare a contribution margin income statement and calculate operating leverage. 2. Suppose the company is unsure exactly how many units they will sell. As such, their marketing department has provided

The Gross profit margin ratio is a measure of profitability concerned with the effectiveness of generating profit. It represent the relation between the gross profit and the sales revenue generate in the same period (McLaney and Atrill, 2012). The higher of this ratio is better for the company. The Dixons´ gross profit margin is virtually the same in both years, 2013 is 7,32% and 2014 is 7,47%. However, it is too low to compare with the industry average ratio (15%). It should be as a consequence

will do. The basic As/Sold As Matrix" (400,000 x 400,000). Obviously, idea of the relative sales value scheme is that all sales the possible combinations are endless, so how does one should show gross margin percent equal to the average choose a "best" approach? The "best" solution is to gross margin percent across the full joint product set. start with demand for the highest value product (405) This average is 19% [(246 - 200) (246)]. This does and work back unsold production to the

Contribution Margin and Break Even Analysis. Many factors come into play in determining business success. One of them is the financial factor. For a company to set financial goals it is crucial that its management know in detail the products or services they sale or provide. This is the analysis of two different scenarios at Aunt Connie 's Cookies Simulation (University of Phoenix, 2011) and the financial performance of Jamestown Electric Supply Company (Heiter, et. al. 2008). During both analysis

must understand how costs are defined, as well as the relationship between cost, volume, and profitability. One of the important, yet relatively simple, tools afforded by cost/volume/profit analysis is known as contribution margin analysis. Your company's contribution margin is simply the percentage of each sales dollar that remains after the

Gross profit margin reflects the amount of revenue from sales that is left for profit and to pay other expenses after the cost of the goods sold is subtracted. This margin is roughly equivalent to the markup on a product and reflects the amount over cost the company is able to charge. Firms in retail can usually increase their gross profit margin if they can differentiate themselves from their competitors and charge a higher price for roughly equivalent products. Staples has pulled ahead of Office

Operating Margin By having a good operating margin which is a margin ratio used in measuring a company 's pricing strategy and operating efficiency. The operating margin, measures your operating profitability, it indicates how much of each dollar of revenues used is left over after both costs of goods sold and operating expenses are considered. Operating margins are important because they measure efficiency. The higher the operating margin, the more profitable a company 's core business is. For example

stock’s price movement or the overall state of the market. Profit Margin Anal ysis A company’s stock price, in large part, is driven by the company’s ability to generate earnings. Therefore, it is useful for investors to analyze the profitability of a company before investing in it. One way to do this is by calculating and tracking various profit margins, which reflect how efficiently a company uses its resources. Profit margins are expressed as a ratio, specifically “earnings” as a percentage

REVENUES – (FIXED COSTS + VARIABLE COSTS) 240,000 – (120,000 + 8,000) 240,000 – 128,000 = $ 112,000 4. Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? Show calculations to support your answer. Barber 's Salary by Week: $ 160.00 Price per hour = $ 4, hours per week = 40 Weekly salary per barber: 4 * 40 = 160 or $ 160