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 Target profit is added to what other financial statement line item, or element, to determine the numerator in the overall targetcontribution margin (CM) calculation in break-even analysis?O Variable costsO Fixed costsO Net income after taxesO Operating profit

Break-even analysis is a financial tool used to determine the point at which total revenue equals…

Target profit is added to what other financial statement line item, or element, to determine the numerator contribution margin (CM) calculation in break-even analysis? O Variable costs O Fixed costs O Net income after taxes O Operating profit

Target profit is added to what other financial statement line item, or element, to determine the numerator contribution margin (CM) calculation in break-even analysis? O Variable costs O Fixed costs O Net income after taxes O Operating 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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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

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In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss area
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
1. To compute the breakeven point using the contribution margin, we get the ratio of a. Total fixed expenses and Total contribution margin b. Total variable expenses and Total Contribution margin c. Total fixed expenses and Contribution margin per unit d. Total variable expenses and Contribution margin per unit 2. A mathematical expression that describes a breakeven point of a company is a. Sales Revenue = Variable expenses + Fixed expenses b. Sales Revenue = Variable expenses - Fixed expenses c. Sales Revenue < Variable expenses + Fixed expenses d. Sales Revenue > Variable expenses - Fixed expenses 3. The Cost-Volume-Profit equation is given by a. Sales Revenue = Profits + Contribution margin ratio + Fixed expenses b. Sales Revenue = Profits + Contribution margin + Fixed expenses c. Sales Revenue = Profits+ Variable expenses + Fixed expenses d. Sales Revenue = Profits -Variable expenses…
Which of the following equations is correct for determining the required sales in units to generate a targeted amount of pre-tax income (πB) under the equation method (where Q = sales in units, F = total fixed costs, πB = pre-tax profit, v = variable cost per unit, and p = selling price per unit)?
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1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: 1 2 3 Data 4 Sales Variable costs: 5 67 00 8 A Chapter 1: Applying Excel 9 10 11 Cost of goods sold Variable selling Variable administrative Fixed costs: Fixed selling Fixed administrative $ $ $ $ $ $ B 32,000 16,000 1,600 1,400 2,500 1,500
Change in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?
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
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
Which of the following does not represent a cost -volume -profit analysis equation a. Sales = totale expenses + profit b. Sales + fixed expenses profit = contribi argin + sales c. Profit = contrib contribution margin - fixed expenses d. Contribution margin- fixed expenses - profit 0 e. Sales - fixed expenses - variable expenses ses = 0