The contribution margin ratio equals:Multiple ChoiceOSales contribution margin.Sales variable expenses.Contribution margin = sales.Contribution margin = variable expenses.

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

Answered: The contribution margin ratio equals:…

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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Similar questions

Define the term break-even point. What is the variable cost ratio? The contribution margin ratio? How are the two ratios related? Define the term sales mix. Give an example to support your definition.
Contribution margin dividedt by Income is the: Multiple Choice Contribution margin ratio. Margin of safety. Degree of operating leverage. Sales mix. Break-even point in units.
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…
On the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a. Contribution margin ratio O b Selling price per unit minus the variable.costs per unit Oc Variable costs per unit Od. Difference between contribution margin and fixed costs O e. Selling price per unit
26..
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 contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost per unit ratio O b. Selling price per unit the variable cost per unit O c. None of the given answers O d. The selling price per unit/variable cost per unit e. (total sales/total sales) – variable cost ratio
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)
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
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
When the total contribution margin is greater than total fixed costs, a company has Select one: a. Higher variable cost and fixed cost. b. A net loss c. Zero profit. d. Net income.

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The contribution margin ratio equals: Multiple Choice O Sales contribution margin. Sales variable expenses. Contribution margin + sales. Contribution margin= variable expenses.