Answered: Margin of safety is computed as Select…

Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven sales - Variable costs *C. Actual sales - Breakeven sales O d. Actual sales-Contribution margin

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Question

based on the attached what is the answer?

Margin of safety is computed as,
Select one:
O a. Contribution margin-Fixed costs
O b. Breakeven sales- Variable costs
C. Actual sales - Breakeven sales
O d. Actual sales- Contribution margin

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The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the: a. margin of safety point b. total cost point c. breakeven point d. unit contribution margin
The margin of safety is equal to: a) Sales - (Fixed Costs/Contribution Margin Ratio) b) Sales - Net Income c) Sales - (Variable Costs/Contribution Margin) d) Sales - (Variable Costs + Fixed Costs)
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Which of the following is a correct definition of the margin of safety? The excess of contribution margin over fixed costs The excess of gross margin over target income 0 The excess of sales revenue over the breakeven point The excess of ner income over all costs (both variable and fixed
The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
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What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratio
Question 1. Attached are answers. Please put in correct order. Thank you!
In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following? Multiple Choice The break-even point The total fixed expenses The total variable expenses The total contribution margin
Select the correct statement concerning the cost-volume-profit graph at right: At point B, profits equal total costs. Line E is the total cost line. Line F is the variable cost line. The point identified by "B" is the break-even point.