Tesla motors’ cost structure is dominated by fixed costs with a contribution margin ratio of .6 and fixed costs of $380,000. every dollar of sales contributes 60 cents towards fixed costs and profit. general motors’ cost structure is dominated by variable costs with a lower contribution margin ratio of .25 with a fixed cost of $150,000. every dollar of sales contributes 25 cents toward fixed costs and profit. both companies have monthly sales of $750,000. suppose both companies experience a 10 percent decline in sales volume. by how much would each company’s operating income decrease?

In business,what would be the input, conversion and output of operating a summer band camp

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is