The CM ratio at various levels of sales activity.* The relationship between volume, costs , and revenues over wide rangesof activity.c. the break-even point.d. None of these.i in multiple product firms, a shift in the sales mix from less profitableproducts to more profitable products will cause the company's break-evenpoint toa. decrease.b. there will be no change.c. increase.d. none of these.

Since you have asked multiple question, we will solve the first question for you. If you want any…

The most important use of the CVP graph is to show a. The CM ratio at various levels of sales activity. * The relationship between volume, costs , and revenues over wide ranges of activity. c. the break-even point. d. None of these.

The most important use of the CVP graph is to show a. The CM ratio at various levels of sales activity. * The relationship between volume, costs , and revenues over wide ranges of activity. c. the break-even point. d. None of these.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even…

A: Cost-volume-profit graph (CVP): Cost-volume-profit graph is a graphical representation of volume…

Q: The net profit margin ratio is calculated by dividing net sales by net income.

A: INTRODUCTION: The net profit margin calculates how much net income is earned as a percentage of…

Q: Which of the following is an assumption of cost-volume-profit analysis? a. The inventory quantities…

A: Whereas fixed costs remain constant, variable costs change in proportion to the volume of…

Q: 4. Construct a profit- volume chart, indicating the break-even point. 5. What is the margin of…

A: Profit-volume chart indicates profit or loss expected, at different sale volumes. Margin of safety…

Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…

A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…

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: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Prepare an analysis of the sales quantity and unit price factors did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: Which are formulas for ROI? (check all that apply) Sales-Profit Margin Net Operating Income /…

A: Net operating income is the income generated by a company's operations after deducting operating…

Q: Total profit is defined as total revenue, R(x), minus total cost, C(x), and is given by the function…

A: Profit Function: Profit is the result from deducting the cost or the expenses to the revenue. It…

Q: 4. (A) Which of the following transactions would cause net income for the period to be understated…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: A is based on various commission rates for different levels of sales. a. Differential Pay b.…

A: Commission: It is an additional pay to an employee for extra work. It is based on the performance…

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: Describe the difference between the unit-soid approach to the cvp analysis and to the sales revenue…

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…

A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…

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: On a CVP graph, dollars are represented on the horizontal (X) axis and unit volume is represented on…

A: On a CVP (Cost-Volume-Profit) graph, unit volume is typically represented on the horizontal (X)…

Q: Name the accounting principle that requires inventories to be reported at sales price less…

A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…

Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…

A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: Below is the information on a project that you are evaluating for deciding on its worthiness as an…

A: The question is related sensitivity Anaysis. The details are given

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: The of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O…

A: Sales mix refers to the combination or proportion of different products or services that a company…

Q: Complete comparative income statements for the month of January for Laker Company for the four…

A: The inventory can be valued using various methods such as LIFO, FIFO, weighted average, and specific…

Q: Operating leverage measures the: 1. Change in profit when sales changes 2. change in contrribution…

A: Leverage is another way to refer to debt. In business, Leverage often refers to borrowing funds to…

Q: Joint cost CO

A: Joint cost is the cost of producing two or more products at same time.

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

Q: All of the following represents a cost -volume -profit relationship except : a. Profit = totalcon…

A: CVP analysis is the analysis which is more helpful in determining the effects of variation in the…

Q: The use of fixed costs to extract higher percentage changes in profits as sales activity changes…

A: SOLUTION- DEGREE OF OPERATING LEVERAGE CALCULATES THE PROPORTIONAL CHANGE IN OPERATING INCOME THAT…

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis - generally cost volume profit analysis is used to determine the…

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 =…

Q: 1. Which of the following shows the degree of operating leverage? The percentage change in the sales…

A: The degree of financial leverage (DFL) is a financial metric that measures the sensitivity of a…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: Profits -to-Sales relationships are defined as profit margins. Select one: a. True b. False

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…

A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…

Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

100%

The CM ratio at various levels of sales activity.
* The relationship between volume, costs , and revenues over wide ranges
of activity.
c. the break-even point.
d. None of these.
i in multiple product firms, a shift in the sales mix from less profitable
products to more profitable products will cause the company's break-even
point to
a. decrease.
b. there will be no change.
c. increase.
d. none of these.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Answer full question.
. A company can use cost-volume-profit analysis to determine the level of sales required to earn a target profit. TRUE OR FALSE
Give me a formula of sensitivity analysis under of cost volume profit analysis(CVP). Thank youuu:)
1
A multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.
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 break-even point is the point in the volume of activity where the organization's revenues and expenses are Select one: a. Varied b. Equal C. Fixed d. Not equal
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 Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $55,000 cash from the issue of common stock. 2. Purchased $78,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,400 paid in cash. 4. Sold inventory on account that cost $44,000 for $83,000. 5. Freight cost on the goods sold in Event 4 was $1,200. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $5,360 worth of goods that had a cost of $2,730. 7. Collected $68,060 cash from accounts receifable. 8. Paid $64,000 cash on accounts payable. 9. Paid $3,360 for advertising expense. 10. Paid $3,570 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. Transaction Cost
Operating leverage measures the: O Change in profit when sales changes. O Change in Contibution when sales changes. O Change in BEP when fixed cost changes. O Change in BEP when sales changes.
On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSE
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.