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

Q: Which of the following is determined by subtracting all variable costs from the total selling price?…

A: Income statement is a financial statement that shows profitability, total revenue and total…

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: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…

A: Margin Of Safety is the difference between Break Even Sales and Actual Sales

Q: All of the following represents a cost-volume- profit relationship except: a. Total contribution…

A: Cost profit volume analysis relationship shows how the profit of a entity changes due to change in…

Q: In Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in…

A: Cost-Volume-Profit analysis is performed to analyze the behavior of costs and revenues and it shows…

Q: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: The inventory can be valued using various methods: 1. FIFO 2. LIFO 3. Weighted average method

Q: How is the break-even point calculated? a. Fixed Costs / Contribution Margin Ratio b. Sales /…

A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

Q: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…

A: Variable cost ratio = Variable cost per unit / Selling price per unit

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

A:

Q: The contribution margin ratio equals: Multiple Choice O Sales contribution margin. Sales variable…

A: The contribution margin takes into consideration variable expenses only.Contribution margin is the…

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: The variable expense ratio equals

A: Contribution Margin Ratio :— It is calculated by dividing contribution  by sales.…

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: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: Contribution margin is selling price plus unit cost. True or false

A: Contribution Margin is the income before deduction of any fixed cost. Contribution margin = Selling…

Q: Assume markup percentage equals desired profit divided by total costs. What is the correct…

A: The mark-up amount of the profit is the amount which has been added on the cost so that the profit…

Q: The three most common cost behavior classifications are a. variable costs, product costs, and sunk…

A: Cost volume profit analysis includes various techniques that help in the decision-making of the…

Q: Match the following terms with the correct definitions: 1. Costs that do not change in total over…

A: Cost accounting is a form of managerial accounting used to assess the cost of production and various…

Q: Which of the following statements about CVP analysis is true? O a. Unit selling price, unit variable…

A: Cost volume profit analysis is the methods to identify the impact on operating income due to the…

Q: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The difference between sales price per unit and variable cost per unit is the:   Multiple Choice…

A: The objective of the question is to identify the term that represents the difference between the…

Q: Mark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c.…

A: Markup refers to the difference between the selling price of a good or service and its cost

Q: . Provide examples of how cost–volume–profit analysis can be used for decision-making. 2. Explain…

A: CVP stands for Cost volume profit analysis refers to finding out how the changes in the fixed costs…

Q: PV ratio is the function of sales and variable costtherefore it can be achieved by

A: The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: which of the following statement is true

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: The line that begins at the origin on a CVP graph represents     total expenses.     total fixed…

A: Since you have posted multiple questions , we will do the first one for you. If you want any…

Q: Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable…

A: The cost of the inventories which has been sold out by the company can be estimated and computed by…

Q: The ratio of contribution margin in dollars to the selling price is the: Select one: Oprofit margin.…

A: We know that,  Contribution is sales - variable cost

Q: Which of the following statements about CVP analysis is true? O a. Operating income calculations in…

A: Selling price:  Selling price is a price set by the supplier at which he is ready to sell his…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Which of the following is the indicator of the rate at which company is earning profit? Select one:…

A: Ratio Analysis Each  items in the financial statements of an enterprise is compared by using ratio…

Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…

A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…

Q: 17) Target costing sets prices by computing an average cost and then adding a desired markup.

A: Target costing is a method adopted by the management to determine product cost and to use such cost…

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: :The variable cost ratio is calculated as contribution margin ratio - (the selling price per…

A: Variable cost Ratio= Variable Cost per unit/ Selling price per unit

Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…

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

Q: In a profit diagram, the safety margin can either be expressed in kronor or some form of volume.…

A: Margin of safety is a financial metric which represents the number of units beyond the break-even…

Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…

A: Net income as per CVP analysis -  sales - variable cost = contribution  contribution - fixed cost =…

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.