The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost +Variable Cost)], represents,O the break-even pointO the profit equationO the sales ratioO the market shareO the value equation

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

Answered: The difference, (Total Revenue - Total…

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

Markup is: Group of answer choices Selling price - cost Selling price divided by cost Selling price + cost Selling price × (1 + cost)
5
Given the following notations, what is the breakeven sales level in units? SP =selling price per unit FC = total fixed cost VC = variable cost per unit A. SP / (FC/VC)B. FC/(VC/SP)C. VC/(SP – FC)D. FC/(SP – VC)
1. Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on profits analyzing the effects of changes in volume on profits determining selling price All of these choices are correct. 2. Contribution margin is the ________. difference between sales and fixed costs difference between sales and total costs difference between sales and variable costs None of these choices are correct.
Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost levels True False
1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volume
Which of the following would not be an acceptable way to express contribution margin? * O 100% minus variable cost percentage Unit selling price minus unit variable costs Contribution margin per unit divided by unit selling price Variable costs divided by total sales revenue None of the above
Profitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.
(Variable cost = Total cost - Fixed cost - Net profit) you have not consider the net profit in the calculation. I think it should be added right ?
Profit at any level of sales in units is measured as a. Sales (units) * Cost per unit + Fixed cost b. Sales (units) * Cost per unit O c. Sales (units) * Cost per unit - Fixed cost d. None of the above
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?
using the price p=20 - .05x, use the Revenue function to find the marginal Revenue function R'(x), Find a. R'(100)= b. R'(175)= c. R'(250)= The marginal Revenue R'(x) approximates how the revenue will change on the sale of the next item. a. Given R(100) = 642 and R'(100)= 18 then R(101) ≈ b. Given R(400) = 16,250 and R'(400)= -10 then R(401) ≈ c. Given R(1000) = 3500 and R'(1000) = 3 then R(1001) ≈

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The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equation