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Please select the option that best analyzes the PROFIT MARGIN for our example company.   The profit margin indicates the amount of sales that are ultimately realized as income after all expenses are considered. Profit margin is not a good measure of how well a company performs, so this information does not indicate how well our company is performing financially.   The profit margin indicates the amount of sales that are ultimately realized as income after all expenses are considered. Our company retains between 15-20% of its sales as income, which is a comfortable profit margin.   The profit margin indicates the amount of sales that are ultimately realized as income after all expenses are considered. Our company retains between 80-85% of its income as sales, which is a very high profit margin.   The profit margin indicates the amount of sales that are ultimately realized as income after all expenses are considered. Our company retains between 80-85% of its income as sales, which…

Which of the following statements are true about profitability ratios? Check all that apply. If a company has a net profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. If a company’s operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in the return on assets ratio implies an increase in the assets a firm owns. If a company issues new common shares but its net income does not increase, return on common equity will increase.

Alternative measures of Profit: Calculate the accounting profit or loss as well as the economic profit or loss in each of the following situations: A firm with total revenues of $150 million, explicit costs of $90 million, and implicit costs of $40 million. A firm with total revenues of $125 million, explicit costs of $100 million, and implicit costs of $30 million. A firm with total revenues of $100 million, explicit costs of $90 million, and implicit costs of $20 million. A firm with total revenues of $250,000, explicit costs of $275,000, and implicit costs of $50,000

For CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.

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When sales volume increases, which company will experience a larger percentage increase in profit: company X, which has mostly fixed expenses, or company Y, which has mostly variable expenses?

By modifying the break-even equation, a company is able to determine the sales required to earn a ________________ profit.   a.banker's   b.working capital   c.target   d. contribution

What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between total revenue and total costs C) The total amount of money available for investment D) The value of goods produced in excess of demand Correct Answer: B) The difference between total revenue and total costs

The assumptions on which cost-volume-profit analysis is based appear to be most valid for businesses: over the long run. over both the short run and the long run. in periods of increasing sales. over the short run. in periods of sustained profits.

Which of the following is true regarding the contribution margin ratio of asingle product company? a. As fixed expenses decrease, the contribution margin ratio increases b. The contribution margin ratio increases as the number of units sold increase c. The contribution margin ratio multiplied by the variable expense per unit equals thecontribution margin per unit d. If sales increase, the peso increase in net operating income can be computed bymultiplying the contribution margin ratio by the peso increase in sales

What can the weighted average contribution margin ratio be used for? To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.

Answer? ? Financial accounting

The amount by which a company's sales can decline before losses are incurred is called the:degree of operating leverage.margin of safety.profit loss.contribution margin ratio.

The degree of operating leverage cannot be used to compare companies. measures how much of each sales dollar is available to cover fixed expenses. does not provide a reliable measure of a company’s earnings volatility. is computed by dividing total contribution margin by net income.

Please given correct answer general accounting

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then the gross profit margin M = M(G, T) is given by the formula M = GT. Use functional notation to express the gross profit margin for a company that has a gross profit of $355,000 and a total revenue of $510,000