Question 4 All of the following represents a cost-volume-profit relationship except: a. Sales - variable expenses - profit = fixed expenses b. Total contribution margin + variable expenses = variable expenses + fixed expenses + pro C. Profit = total contribution margin + fixed expenses d. Sales – Variable expenses fixed expenses + profit e. Sales = total expenses + profit

Question 4 All of the following represents a cost-volume-profit relationship except: a. Sales - variable expenses - profit = fixed expenses b. Total contribution margin + variable expenses = variable expenses + fixed expenses + pro C. Profit = total contribution margin + fixed expenses d. Sales – Variable expenses fixed expenses + profit e. Sales = total expenses + profit

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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In the cost-volume- profit graph (above), what is represented by the point marked "D"? Question 3 options: Operating loss area Operating income area Breakeven point Fixed expenses
Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-ever represents:
Target profit is added to what other financial statement line item, or element, to determine the numerator in the overall target contribution margin (CM) calculation in break-even analysis? Variable costs Fixed costs Net income after taxes Operating profit
All of the following represents a cost-volume-profit relationship except: a. Total contribution margin + variable xpenses = variable expenses + fixed expenses profit b. Sales = totalexpe expenses + profit O cSales - variable senses + profit = fied expenses O d. Profit = totalcontri contribution margin- fixed expenses O e Sales - Variable expenses = fixed expenses + profit
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Continue LA $ Eliminate LA Net Income Increase (Decrease)
Contribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenue
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed expenses = variable expenses c) sales + variable expenses = contribution margin d) contribution margin + fixed expenses = net income
On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSE
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.