The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per unit - the variable cost per unit O c. The selling price per unit ratio /variable cost per unit ratio d. The selling price per unit/variable cost per unit e. (total sales/total sales) - variable cost ratio

The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per unit - the variable cost per unit O c. The selling price per unit ratio /variable cost per unit ratio d. The selling price per unit/variable cost per unit e. (total sales/total sales) - variable cost ratio

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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The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
The variable cost ratio is calculated as? .a the selling price per unit/the selling price per) contribution margin ratio - (unit B. None of the given answers .c Selling price per unit - the variable cost per unit .d The selling price per unit / variable cost per unit .e The selling price per unit ratio / variable cost per unit ratio
All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. OBoth unit contribution margin and contribution margin.ratio are unchanged. Od. Both unit contribution margin and contribution manrgin ratio decrease. O e. Unit contribution margin increases and contribution margin ratio increases,
In describing the cost formula equation, Y = a + bX, which of the following is correct: Select one or more: a. (a) means variable cost per unit b. (X) means total variable cost V c. (a) means fixed cost d. (y) means total fixed costs
The contribution-margin ratio is: Select one: a. unit contribution margin divided by the selling price b. the difference between the selling price and the variable cost per unit. c. unit contribution margin divided by fixed cost per unit. d. variable cost per unit divided by the selling price e. fixed cost per unit divided by variable cost per unit.
Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line D
Select the correct statement concerning the below cost-volume-profit graph: Line E A O d. O e. O a. None b. At point B, profits equal total costs. O c. Line E is the total sales line. d. Line F is the Total sales line. e. The point identified by "B" is the breakeven point. The break-even point is where B Line F Oa. None O b. total sales equal total fixed costs. O c. total variable costs equal total fixed costs. total sales equal total variable costs. Line D contribution margin ratio equals total fixed costs. O a. 190 000 b. None OC. 0.73 22 The following monthly data are available for Lumberyard Company which produces only one product: Break-even level in sales of dollars: $530 000 Budgeted sales in dollars for the month of June: $720 000 d. 1 250 000 e. 1.35 How much is the margin of safety for the company for June?
3a
Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per unit of the cost driver b.The fixed cost per unit c.The slope of the cost function d.Total fixed costs
J10.
NOTE: strictly use algebraic approach. Formulas are given in the photo attached thank you
2. Determine the missing amounts. Contribution Margin Contribution Margin per Unit Unit Selling Price Unit Variable Costs Ratio 1. R.O.300 R.O.195 XXX XXX 2. R.O.600 XXX R.O.150 XXX 3. XXX XXX R.O.960