1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volume

Q: The net profit margin ratio is calculated by dividing net sales by net income.

A: INTRODUCTION: The net profit margin calculates how much net income is earned as a percentage of…

Q: which of the following occurs if a company decreases its selling price per unit? a. net income…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…

A: Total sales of a company can be divided into Margin of safety sales and break even sales.

Q: 1. how would a cost volume profit analysis would be performed for a company that sells more than one…

A: Having an understanding of CVP analysis The breakeven point for various sales volumes and cost…

Q: Which are formulas for ROI? (check all that apply) Sales-Profit Margin Net Operating Income /…

A: Net operating income is the income generated by a company's operations after deducting operating…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied…

A: Return on Investment (ROI) is a fundamental metric used by businesses to evaluate the profitability…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: The degree of operating leverage (DOL) is interpreted as the ratio of the percentage change in net…

A:

Q: In the DuPont formula, return on assets equals: Multiple Choice Profit margin on sales x Inventory…

A: Return on assets is a method used to evaluate the profitability of the company. It also measures…

Q: The of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O…

A: Sales mix refers to the combination or proportion of different products or services that a company…

Q: What can the weighted average contribution margin ratio be used for? To solve for a measure,…

A: The weighted average contribution margin ratio is a key financial metric that can be used for…

Q: Gross profit from sales is the difference between

A: Gross profit means the excess of revenue against the cost of good sold from the operating activity…

Q: For CVP analysis calculations, which of the following statements is correct? O A. In target profit…

A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…

A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…

A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…

Q: Fluctuations in unit volume, changes in unit price or unit cost of goods sold and modifications in…

A: The scenario mentions three potential changes that can occur within a business:Fluctuations in unit…

Q: The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Variable…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: How does good operating leverage magnify earnings results with modest revenue increase?

A: Operating Leverage: A cost-accounting technique called operational leverage assesses how much a…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share