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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When using data from a segmented income statement, the dollar sales for a segment to break even is equal to: Multiple Choice Common fixed expenses ÷ Segment CM ratio Traceable fixed expenses ÷ Segment CM ratio Non-traceable fixed expenses ÷ Segment CM ratio (Traceable fixed expenses + Common fixed expenses) ÷ Segment CM ratio
The measure that reflects an organization's variable and fixed cost relationship and indicates how a percentage change in sale from the current level will impact from the current level will impact profits is called the a. break-even point. b. contribution margin. ç. degree of operating leverage. d gross margin. e. margin of safety.
Change in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?
Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? Select one: a. As long as the contribution margin is a positive number, net income will be positive b. As long as variable costs are more than fixed costs, net income will be negative c. As long as the contribution margin is greater than fixed costs, net income will be positive d. As long as the sales price per unit is greater than fixed costs per unit, net income will be positive
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