The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio.

Q: Which of the following ratios indicates the percentage of each sales dollar that is available to…

A: The objective of the question is to identify the correct ratio that indicates the percentage of each…

Q: Contribution margin is

A: Contribution margin is an important term used in cost-volume-profit analysis. It is the excess of…

Q: The margin of safety is equal to:

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…

A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…

Q: Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the…

A: Solution:- Cost-volume-profit graph is the graph which measures the loss, profit and break-even…

Q: 9. The point where the sales line and the total expense line intersects represents the A. profit…

A: Sales line: Sales line represents the sales incurred by the company over the specific period.…

Q: In describing the cost formula equation, Y = a + bX, which of the following is correct? a. “Y” is…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost…

Q: Select the correct statement concerning the below cost-volume-profit graph: Line E A O a. None O b.…

A: Margin of safety=Budgeted sales in dollars-Break even level in sales dollars

Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: 1. Which of the following is an example of a variable cost? а. interest b. ingredients С. insurance…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False

A: Cost behavior serves as an indicator of how a cost will vary overall when an activity is changed.…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: 7. Which of the following is a correct formula to calculate contribution margin ratio (CM ratio)?…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: 2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED…

A: Cost behavior refers to how costs change as the level of activity or output changes within a…

Q: In describing the cost formula equation, Y = a + bX, which of the following is correct:

A: The cost volume formula is denoted by -  Y= a + bx where- “Y” is total cost  “a” is the total fixed…

Q: Operating income can be calculated by: dividing fixed costs by the contribution margin ratio.…

A: Operating income is the total amount of profit generated by a company after considering the value of…

Q: The contribution-margin ratio is:  Select one: a. unit contribution margin divided by the selling…

A: The contribution margin ratio is the % of the sales revenue which is remaining after substracting…

Q: The “plus” in cost-plus pricing is often referred to as Markup.   Extra profit.   Gross profit.…

A: Cost plus pricing means when selling price is fixed as a addition of profit on the cost price. For…

Q: Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put…

A: Answer: The correct option is option (c). The M&O costs are put in the numerator.

Q: Consider the following two statements concerning cost-volume-profit analysis. (1) The contribution…

A: Sales minus variable cost is Contribution margin Contribution also referred to as excess of the…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio / variable…

A: Contribution is the amount obtained after deducting the variable costs from the sales.

Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: The formula for Contribution is Select one: a. Fixed cost + loss b. Sales - Variable cost c. Fixed…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: Which of the following statements correctly complete the sentence: "Gross Margin equals": I.…

A: Profitability of the firm is known by various measures like gross profit margin, net profit margin,…

Q: What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and…

A: Definition:  Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.