Question26The contribution margin ratio is calculated as:a.The selling price per unit ratio /variable cost per unit ratioNot yetansweredb. Selling price per unit - the variable cost per unitMarked out ofNone of the given answers0.60d. The selling price per unit/variable cost per unitFlage. (total sales/total sales) - variable cost ratioquestionPREVIOUS PAGE

contribution margin is sales made less variable cost incurred is contribution margin

The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost per unit ratio b. Selling price per unit - the variable cost per unit O c. None of the given answers 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: O a. The selling price per unit ratio /variable cost per unit ratio b. Selling price per unit - the variable cost per unit O c. None of the given answers 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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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.
Which of the following equations is correct for determining the required sales in units to generate a targeted amount of pre-tax income (πB) under the equation method (where Q = sales in units, F = total fixed costs, πB = pre-tax profit, v = variable cost per unit, and p = selling price per unit)?
The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per unit - the variable cost per unit 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 pe here to search hp f6 10 # 3 4 6. R Y G H. J S
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
Consider the following two statements concerning cost-volume-profit analysis. (1) The contribution per unit is the difference between the sales price per unit and the fixed costs per unit. (2) The marginal cost per unit will usually equal the variable cost per unit. Which one of the following combinations ( true/false) relating to the above statements is correct?
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
1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs - Unit Contribution Margin 2. Variable Costs Contribution Margin Percent 3. Variable Costs + Unit Contribution Margin 4. Fixed Costs + Contribution Margin Percent
6. The unit contribution margin is computed by⦁ subtracting the variable cost per unit from the sales price per unit.⦁ dividing the sales revenue by variable cost per unit.⦁ dividing the variable cost per unit by the sales revenue.⦁ subtracting the sales price per unit from the variable cost per unit.
Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. Oc. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. LEVIOUS PAGE FINISH ATTEMPT ... Finish Esc FnLock F1 F2 F3 F4 FB F9 F10 F11 @ 23 2$ % 1 3 4 6 8. Q W E IT Y S G Y J L. C NIM 24 Alt こ0 >
Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O c. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. OUS PAGE FINISH ATTEMPT ... F1 F2 F3 F4 F5 F6 F7 F8 F10 23 % & 2 3 4 7 8. V Q W T A F K 13 C V BYNI M 24 S
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs can be divided into variable and fixed components O b. Costs are nonlinear Fixed cost per unit is not constant О с. O d. Sales mix of products sold does not change e. Selling price per unit does not change with volume O O 0 O O