Contribution margin Select one: a. None of the answers are correct O b. excludes variable selling costs from its calculation. O c. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. O d. is always the same as gross profit margin. e. equals sales revenue minus variable costs.

Contribution margin Select one: a. None of the answers are correct O b. excludes variable selling costs from its calculation. O c. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. O d. is always the same as gross profit margin. e. equals sales revenue minus variable costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Contribution margin
Select one:
a. None of the answers are
correct
b. excludes variable selling
costs from its calculation.
c. is calculated by subtracting
total manufacturing costs per
unit from sales revenue per
unit.
O d. is always the same as
gross profit margin.
e. equals sales revenue minus
variable costs.

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Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.
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