Answered: Contribution margin ratio is the…

Contribution margin ratio is the proportion of contribution in relation to the Net Income Variable costs Sales Fixed costs Group of answer choices 1 2 3 4

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3Q: Explain how a contribution margin income statement can be used to determine profitability.

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Contribution margin ratio is the proportion of contribution in relation to the

Net Income
Variable costs
Sales
Fixed costs

Group of answer choices

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Similar questions

QUESTION 6 Which of the following items would not be found on a contribution format income statement? Fixed cost Variable cost Net income Gross margin
Matching Following are a number of key terms and concepts introduced in thechapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note thatnot all key terms and concepts will be used. Answers are provided at the end of thischapter.a. Cost–volume–profit analysisb. Cost formulac. Contribution margind. Contribution margin formatincome statemente. Linearity assumptionf. Contribution margin ratiog. Operating leverageh. Sales mixi. Break-even pointj. High–low techniquek. Managerial accountingl. Management processm. Variable costn. Fixed costo. Relevant rangep. Mixed (semivariable) costq. Cost behavior pattern____ 1. The proportion of total sales represented by various products or categoriesof products.____ 2. The difference between revenues and variable costs.____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.____ 4. The…
calculate for me the Thotho income statement variable costing
Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution margin ratio
Subject:- Accounting
n Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 105,000 73,500 31,500 27,720 $ 3,780 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit
Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFO
Which of statements about the contribution income statement is correct? Group of answer choices Costs are classified as being either product or period. Costs are classified as being either fixed or variable. It is required by GAAP. It is intended for external users.
Explain how a contribution margin income statement can be used to determine profitability.
Which costs are assigned using the weighted-average method?
Define and explain contribution margin on a per unit basis.
Under the weighted average method, how are prior-period costs and output treated? How are they treated under the FIFO method?