Answer: as a medium meant to be used in conjunction with someone speaking.
Explanation:
Presentation slides are meant to augment what the person presenting is saying. They are to provide proof as well as a visual depiction of the words of the presenter so that the audience can understand the presentation better.
For instance, a person giving a presentation on the earrings potential of a business will use charts and tables to show the expected increase. The charts and tables will help show the point that the person is trying to make so that the audience understands.
Jerry Rice and Grain Stores has $4,030,000 in yearly sales. The firm earns 2.2 percent on each dollar of sales and turns over its assets 4 times per year. It has $140,000 in current liabilities and $343,000 in long-term liabilities.
Required:
a. What is its return on stockholders' equity?
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.50, what will be the new return on stockholders' equity?
Answer:
a. Return on stockholders' equity = 16.90%
b. New return on stockholders' equity = 18.62%
Explanation:
a. What is its return on stockholders' equity?
Assets turnover = Sales / Total assets ……………. (1)
Therefore, we have:
Total assets = Sales / Assets turnover = $4,030,000 / 4 = $1,007,500
Total liabilities = Current liabilities + Long-term liabilities = $140,000 + $343,000 = $483,000
Stockholders' equity = Total assets - Total liabilities = $1,007,500 - $483,000 = $524,500
Net income = Sales * Percentage earns on each dollar sales = $4,030,000 * 2.2% = $88,660
Return on stockholders' equity = Net income / Stockholders' equity = $88,660 / $524,500 = 0.1690, or 16.90%
b. If the asset base remains the same as computed in part a, but total asset turnover goes up to 4.50, what will be the new return on stockholders' equity?
Based on equation (1) in part a above, we can have:
New sales = New total asset turnover * Total assets from part a above = 4.50 * $1,007,500 = $4,533,750
New net income = New sales * Percentage earns on each dollar sales = $4,533,750 * 2.2% = $99,742.50
New stockholders' equity = Stockholders' equity in part a above + (New net income - Net income in part a above) = $524,500 + ($99,742.50 - $88,660) = $535,582.50
New return on stockholders' equity = New net income / New stockholders' equity = $99,742.50 / $535,582.50 = 0.1862, or 18.62%
On September 1, 2021, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 9% Hiker's effective interest rate on this loan (rounded) is: (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A. 9.0%.
B. 9.5%
C. 9.6%.
D. 9.7%
Answer:
C. 9.6%.
Explanation:
Our first task in this would be to determine the amount at which the note was issued using the discount rate
PV=FV-(FV*discount rate*8/12)
PV=$100,000-($100,000*9%*8/12)
PV=$94,000
interest rate=($100,000-$94,000)/$94,000
interest rate=6.38%(for 8 months)
Effective interest rate=6.38%/8*12
effective interest rate=9.6%
April 1 April 30 Raw materials inventory $10,500 $13,500 Work in process inventory 5,350 3,770 Materials purchased in April $98,100 Direct labor in April 80,300 Manufacturing overhead in April 160,000 Prepare the cost of goods manufactured schedule for the month of April
Answer:
cost of goods manufactured= $336,980
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 10,500 + 98,100 - 13,500
Direct material used= $95,100
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 5,350 + 95,100 + 80,300 + 160,000 - 3,770
cost of goods manufactured= $336,980
Starfish Enterprises management has obtained data on the material costs for a selected job which used 300 feet of materials, while estimates for the job required only 260 feet of materials. The materials price per unit was the same. Which is not a reason for the difference in material usage? A new employee worked on the job. The material used was of poor quality. The cutting tools were in need of repair. The cost of materials increased from the time of the estimate.
Answer:
Starfish Enterprises
The reason that is not the cause of the difference in material usage is:
The cost of materials increased from the time of the estimate.
Explanation:
a) Data and Calculations:
Units of materials used for the job = 300 feet
Standard units of materials for similar job = 260 feet
Unit variance = 40 Unfavorable (300 - 260)
b) Material usage variance does not concern with the cost of materials. Since it is stated that the materials price per unit remained the same in both instances, the cost of materials increasing is certainly not a factor for the material usage variance. The variance is caused by the other factors.
Frank is a 60- year-old man who is well-loved in his community since he was a boy. He is someone who is outgoing, a party lover, and love to have fun hanging out with peers. Frank is confident about life. From an early age he knew exactly what he wanted to become, and now as a man, he is confident about his career and family and want to leave them a good life when he departs this life. Frank express that he is not afraid of dying but he wants them to be ok when he is gone.
At work Frank is helpful to his colleagues, and even in his community he is well-known among the elderly since he is always putting on Christmas treats for them.
Imagine that Frank is your colleague, and that your boss asks you to write a character reference for Frank. Using Jung’s personality theory to guide your writing, present a minimum one- page character reference in which you spell out Franks behaviour, his outlook on life, his philosophy about people and all the other important things you know about him. Ensure you point out how these different parts of Franks life fits into Jung’s theory and overall what Jung’s theoretical concept says about him.
Answer:
I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.
Explanation:
I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.
On March 29, a customer who owes $14,611 on account to Sonic Sales Company submits a payment of $7,547. Journalize this transaction.
Answer and Explanation:
The journal entry is given below:
Cash $7,547
To Accounts Receivable $7,547
(Being cash collection is recorded)
Here cash is debited as it increased the assets and credited the account receivable as it decreased the assets
The same should be considered and relevant
BusCorp wants to introduce a new procedure to improve how customer requests are handled. This change will require employees to break old routines and adopt new role patterns. They decide to adopt two new programs, one in which employees learn how to work as teams as the company changes. The other involves forming task forces within the company to help determine ne customer service practices.
The formation of task forces to minimize resistance to change is known as:_______.
A. communication.
B. learning.
C. stress management.
D. negotiation.
E. employee involvement.
Answer:
E)Employee involvement
Explanation:
Employee involvement can be regarded as taking part of employees in decision-making process that are crucial to the organization, so that the goals of the organization are met. When employees there is involvement of employees in making decisions, there will be some professional as well as personal stake gained by the employee in the organization as well as the organization overall success. As a result of this there would be increased productivity in part of employees because they will take part actively in various aspects that will bring about success of the firm.
NFL players and owners are trying to negotiate a new labor contract. The owners are getting ready to send the contract over to the players who can then choose to accept the terms or keep bargaining. The owners are deciding whether to stipulate 16 games or 18 games as part of the contract. They would prefer 18 games, but they are worried that the players will not accept the contract and will keep bargaining if they put 18 games in the contract. The situation is described by the sequential game tree below: In the Nash equilibrium, the owners will choose ____________ and the players will respond by choosing to _________________.
Answer:
The answer is "16 games; accept the terms".
Explanation:
In this case, the players will decide the strategy first, followed by the owners.
Participants will choose the Keep Bargaining strategy to maximize its reward in the subgame of Owners' 18 games. "As a consequence, and here is the outcome:"
Players will choose the Accept Terms strategy to maximize the reward in the subgame Players on Owners' 16 games. (350M) and (250M) are the results.
To get a larger payout of $350M, the Owner would have to select a strategy among 16 games. Nash equilibrium is ($350M, $250M) in this case. It implies that the Owner's strategy in Nash equilibrium is to play 16 games, while the Players' strategy is to accept Terms.
An organization's budget program should not be used: Group of answer choices to motivate employees. to assign blame to managers that do not meet budgetary goals. to help evaluate managers. to allocate resources to the various parts of an organization.
Answer:
to assign blame to managers that do not meet budgetary goals.
Explanation:
A budget is used to forecast a company's income and expenses over a specified period.
Uses of a budget
1. It is used to evaluate the performance of managers in meeting the amounts stated in the budget
2. It is also used in allocating resources to the various parts of an organization. for example, units that have been forecasted to earn a higher revenue would receive a higher part of the budget
3. It is used to develop an action plan for the organisation
The only way to decrease your lifestyle budget is by completely eliminating an item.
True
False
Answer:
False
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
A lifestyle can be defined as the way and manner an individual chooses to live his or her life. Similarly, a lifestyle budget comprises the cost of goods and services an individual has chosen to spend his or her money on.
Basically, completely eliminating an item isn't the only way to decrease a lifestyle budget because there could be similar items that even cost way more than the eliminated item.
Some of the benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
Answer:
False
Explanation:
The only way to decrease your lifestyle budget is by completely eliminating an item.
True
False
Sylvia mused to herself, "It has taken over 30 years, but I've finally been named CEO of a major firm. Now, I can concentrate on what I really want to do as a(n) ____________ manager, to focus on the survival, growth, and overall effectiveness of our firm."
Answer:
Strategic.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or an example to the employees working in an organization by being morally upright.
A strategic manager is also referred to as a top-level manager and he or she is mainly focused on setting goals, objectives, and procedures in order to enhance the survival, growth, and overall effectiveness of a business firm.
Hence, Sylvia can concentrate on what she really want to do as a strategic manager, by focusing on the survival, growth, and overall effectiveness of our firm.
Arya has a homeowner’s policy that covers up to $400,000. Her house is completely destroyed in a fire. When an assessment is made of the house and possessions, it is decided that her losses are only worth about $350,000. How much money will Arya receive from her insurer (assuming there is no deductible)? A. $50,000 B. $200,000 C. $350,000 D. $400,000
Answer:
C: 350,000$
Explanation:
If there is no deductible then the insurance would pay the damges. Damages were 350,00$
Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Year Dividend Declared
2015 $20,000
2016 $6,000
2017 $32,000
The amount of dividends paid to preferred and common shareholders in 2015 is:
a. $200 preferred; $19,800 common.
b. $4,000 preferred; $16,000 common.
c. $17,000 preferred; $3,000 common.
d. $10,000 preferred; $10,000 common.
e. $20,000 preferred; $0 common.
Answer:
The correct option is a. $200 preferred; $19,800 common.
Explanation:
These can be calculated as follows:
Dividends paid to preferred shareholders in 2015 = Number of outstanding shares of noncumulative preferred stock * Preferred stock par value * Dividend percentage of preferred stock = 400 * $10 * 5% = $200
Dividends paid to common shareholders in 2015 = Dividend declared and paid in 2015 - Dividends paid to preferred shareholders in 2015 = $20,000 - $200 = $19,800
Therefore, the correct option is a. $200 preferred; $19,800 common.
what is the good that you have selected?
Answer:
what do you mean by that
Explanation:
can you please explain more of the question
Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.
Required:
a. Calculate depreciation and net investment for this economy.
b. Calculate the value of net exports.
Answer:
Correct word for question b. "Now calculate the amount of next year's beginning capital stock for this economy"
a. Begins the year with $100 million in capital. Depreciation rate is 9% per year
Depreciation = 9% * $100 million
Depreciation = 0.09 * $100 million\
Depreciation = $9 million
Gross investment = $20 million
Net investment = Gross investment - Depreciation
Net investment = $20 million - $9 million
Net investment = $11 million
b. Next year begining capital stock = Capital stock at the begining of previous year + Net investment
Next year begining capital stock = $100 million + $11 million
Next year begining capital stock = $111 million
Which 3 statements about the Client request functionality are correct? Selecting Create client request on the Work screen begins the process Checking the Notify client checkbox means the client will be sent an email You can't add attachments to a client request You can request documents from a non-QuickBooks Online client To update the status of a client request, select the request and then the Status drop-down
Answer: • Selecting Create client request on the Work screen begins the process.
• Checking the Notify client checkbox means the client will be sent an email.
• To update the status of a client request, select the request and then the Status drop-down.
Explanation:
QuickBooks refers to an online accounting software that's utilized by several businesses and can be used in the request of information from ones clients.
From the options given, the statements about the client request functionality which are correct include:
• Selecting Create client request on the Work screen begins the process.
• Checking the Notify client checkbox means the client will be sent an email.
• To update the status of a client request, select the request and then the Status drop-down.
A debit balance is the bank statement indicates?
Answer:
Bank Overdraf
Explanation:
Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank.
MC Qu. 157 McCoy Brothers manufactures and sells... McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $84; Z sells for $105. Variable costs for product A are $41; for Z $45. Fixed costs are $482,400. Compute the number of units of Product A McCoy must sell to break even.
Answer:
7,200 units
Explanation:
The computation of the no of units for break even for product A is given below:
But before that the contribution margin for the sales mix is
Particulars product A product Z
Selling price $84 $105
Less:
variable cost -$41 -$45
Contribution margin $43 $60
Sales mix 5 2
CM sales mix $215 $120
Total $335
Now the break even sales in total is
= $482,400 ÷ 335
= 1,440 units
Now for product A, it is
= 1,440 × 5
= 7,200 units
A company has total revenue of $50,000,000, cost of sales of $40,000,000, operating expenses of $5,000,000, and financing costs of $2,000,000. What are earnings per share if the company has 100,000 shares outstanding and no preferred stockholders
Answer:
$30
Explanation:
Earnings per share = earnings / total outstanding shares
Earnings = total revenue - total cost
total cost = $40,000,000 + $5,000,000 + $2,000,000 = $47,000,000
Earnings = $50,000,000 - $47,000,000 = $3,000,000
Earnings per share = $3,000,000 / 100,000 = $30
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:
Sales $780,000
Net operating income $17,940
Average operating assets $100,000
The following questions are to be considered independently.
Required:
Compute the Springfield club's return on investment (ROI).
Answer:Springfield club's return on investment (ROI) is 17.94%
Explanation:
Return on investment (ROI) is given as the ratio of the net operating income to average operating assets and expressed in percentage .
ROI = Net operating income / Average operating assets
Given that
Net operating income =$17,940
Average operating assets = $100,000
ROI = $17,940/ $100,000 = 0.1794, 17.94%
Therefore, the the Springfield club's return on investment (ROI) is 17.94%
Knowledge Check 01 On December 31, after making a concerted effort, management determines that it will not be able to collect the $1,200 owed to it by its customer Acme, Inc. The company uses the direct write-off method to account for uncollectible accounts. Prepare the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer and Explanation:
The journal entry is given below:
Bad debt expense $1,200
To Accounts Receivable- Acme Inc. $1,200
(Being the bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credited the account receivable as it decreased the assets
The same is relevant
Devon invested $10,500 in three different mutual funds. A fund containing large cap stocks made a 6.7% return in 1 yr. A real estate fund lost 15.6% in 1 yr, and a bond fund made 4.9% in 1 yr. The amount invested in the large cap stock fund was four times the amount invested in the real estate fund. If Devon had a net return of $315 across all investments, how much did he invest in each fund
Answer:
Amount invested in a fund containing large cap stocks = $6,000
Amount invested in a real estate fund = $1,500
Amount invested in a bond fund = $3,000
Explanation:
Let:
x = Amount invested in a fund containing large cap stocks = 4 * y = 4y
y = Amount invested in a real estate fund
z = Amount invested in a bond fund =
For total amount invested, we have:
T = total amount invested = x + y + z = $10,500
Therefore, we have:
4y + y + z = $10,500
5y + z = $10,500 ……………………….. (1)
From equation (1), we have:
z = 10,500 - 5y …………………….(2)
Also, for the net returns, we have:
6.7%x - 15.6%y + 4.9%z = $315
0.067(4y) - 0.156y + 0.049z = 315
0.268y - 0.156y + 0.049z = 315
0.112y + 0.049z = 315 ………………… (3)
Substitute equation (2) for z in equation (3), we have:
0.112y + 0.049(10,500 - 5y) = 315
0.112y + 514.50 - 0.245y = 315
0.112y - 0.245y = 315 - 514.50
-0.133y = -199.50
y = -199.5 / -0.133
y = 1,500
x = 4y = 4 * 1,500 = 6,000
From equation (2), we have:
z = 10,500 - 5y = 10,500 - (5 * 1,500) = 3,000
Therefore, we have:
Amount invested in a fund containing large cap stocks = $6,000
Amount invested in a real estate fund = $1,500
Amount invested in a bond fund = $3,000
Checking this, we have:
Total amount invested = $6,000 + $1,500 + $3,000 = $10,500
What is one result of competition in a free-market economy?
A. The government decides who is allowed to compete in the market.
B. Consumers can choose which company's products they want to
buy.
C. Traditional values determine who will compete in the market.
D. Businesses control the price that all the companies within an
industry can charge.
Answer:
b
Explanation:
Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate because
a. taxes on dividends are withheld immediately
b. taxes on capital gains are paid annually
c. taxes on capital gains can be timed
d. after-tax dividends are less certain than capital gains
Answer: c. taxes on capital gains can be timed
Explanation:
Capital gains represent an appreciation in the value of a security therefore they bring in profit to the owners of that security. Capital gains are not taxed until the owner sells the security which means that these taxes can be timed by the owner who can decide to sell at specific times to reduce their tax bill.
This is different from dividends that are taxed as soon as the company declares them. The investors have no say as to the tax timing so they will prefer capital gains where they have some form of control.
Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $120,000; monthly payments for 7 years; interest rate 7%. g
Answer:
$1,104.68
Explanation:
The payment applicable to the future value of the annuity due can be determined using the future value formula for the annuity due provided below by rearranging the formula such payment is made the subject:
FV=monthly payment*(1+r)^n-1/r*(1+r)
FV=future value=$120,000
monthly payment=unknown(let us assume it is MP)
r=monthly interest rate=7%/12=0.005833333
n=number of monthly payments in 7 years=7*12=84
$120,000=MP*(1+0.005833333)^84-1/0.005833333*(1+0.005833333)
$120,000=MP*(1.005833333)^84-1/0.005833333*(1.005833333)
$120,000=MP*(1.629994009 -1)/0.005833333*1.005833333
$120,000=MP*0.629994009 /0.005833333*1.005833333
$120,000=MP*108.628973152
MP=$120,000/108.628973152
MP=$1,104.68
Monty Corp. has been in business for several years. At the end of the current year, the ledger shows: Accounts Receivable $ 326,200 Dr. Sales Revenue 2,761,700 Cr. Allowance for Doubtful Accounts 6,100 Cr. Uncollectible accounts are estimated to be 6% of accounts receivable. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer and Explanation:
The journal entry is shown below:
Bad debt expense Dr $13,472
To allowance for doubtful debts $13,472
(Being the bad debt expense is recorded)
The bad debt expense is
= 6% of $326,200 - $6,100
= $13,472
Here the bad debt expense is debited as it increased the assets and credited the allowance for doubtful debts
32. How many significant accounting policies are listed under its Summary of Significant Accounting Policies
Answer:
There are various significant accounting policies which are governed by IFRS and GAAP framework.
Explanation:
The significant accounting policies are revenue recognition, inventories accounting cost or NRV, Property plant and equipment, goodwill recognition and others. These policies are governed by accounting frameworks such as GAAP and IFRS. Both of these frameworks have differences in accounting treatment.
MC Qu. 134 Mustang Corporation has accumulated... Mustang Corporation has accumulated the following accounting data for the month of April: Finished goods inventory, April 1$32,800 Finished goods inventory, April 30 26,800 Total cost of goods manufactured 124,700 The cost of goods sold for the year is:
Answer:
The cost of goods sold for the year is $130,700
Explanation:
Finished goods inventory, April 1$32,800
Finished goods inventory, April 30 26,800
Total cost of goods manufactured 124,700
Use the following formula to calculate the cost of goods sold
Cost of goods sold = Total cost of goods manufactured + Finished goods inventory, April 1 - Finished goods inventory, April 30
Where
Finished goods inventory, April 1 = $32,800
Finished goods inventory, April 30 = $26,800
Total cost of goods manufactured = $124,700
Placing values in the formula
Cost of goods sold = $124,700 + $32,800 - $26,800
Cost of goods sold = $130,700
Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is:____.
a. arbitration.
b. negotiation.
c. mini-trial.
d. mediation.
Answer:
Option d: Mediation
Explanation:
Alternative dispute resolution (ADR)
This is simply known as other processes of managing or resolving conflicts than the use of traditional Court processes or litigation. There are three methods of ADR. it includes:
1. Negotiation
2. Mediation
3. Arbitration
Mediation
This is simply known as a type of an ADR where a neutral third party helps to quickens the communication process between the conflicting parties so that they can work out their own mutually acceptable agreement.
Mediators
This are people who are part of the mediation. They are regarded as an unbiased facilitators of communication usually between the parties in a private setting.They do not decision-making power with respect to the outcome of the mediation. A neutral person in this case is regarded as an individual who is not in support of either party in the conflict and they are often called the mediator.
The following estimates have been prepared for a project:Fixed costs: $27,000Depreciation: $18,000Sales price per unit: $4Accounting break-even: 50,000 unitsWhat must be the variable cost per unit
Answer: $3.10
Explanation:
Accounting breakeven = Fixed costs / Contribution margin
Fixed costs = Fixed costs + Depreciation = 27,000 + 18,000 = $45,000
50,000 units = 45,000 / Contribution margin
Contribution * 50,000 = 45,000
Contribution = 45,000 / 50,000
Contribution margin = 0.9
Contribution margin = Sales - Variable cost
0.9 = 4 - Variable cost
Variable cost = 4 - 0.9
= $3.10
