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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The ratio of contribution margin in dollars to the selling price is the: Select one: O profit margin. O break-even point in unit sales. O contribution margin ratio. O net income
Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit True False
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)
When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in Units” (or “Change in Total Cost divided by Change in Activity Level”) is used to estimate the: Fixed cost per unit Mixed cost per unit Profit per unit Indirect cost per unit Variable cost per unit Differential cost per unit Opportunity cost per unit
CM ratio = 1 ______ the Variable expense ratio. minus plus divided by multiplied by
• The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the total product costs divided by the number of units produced. c. product plus period cost d. is the total prime costs divided by the number of units produced. e. includes period costs.
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
Within the relevant range: Select one: O A. variable cost per unit decreases as production decreases. O B. fixed cost per unit increases as production decreases. O C. fixed cost per unit decreases as production decreases. O D. variable cost per unit increases as production decreases.
The break-even point in dollars is computed by dividing fixed costs by contribution margin ratio. fixed costs by contribution margin per unit. variable costs by contribution margin ratio. O variable costs by contribution margin per unit.
The Dec. 31, 2016, statement of financial position of Leon Company showed Accounts Receivable of P500,000 and Allowance for Bad Debts of P48,000. Following is a summary of accounts receivable transactions recorded by the entity in 2017: Credit sales during the year P3,120,000 Accounts collected during the year 3,008,000 Accounts written off as uncollectible 52,000 Recoveries of accounts written off in the previous year 2,160 On Dec. 31, 2017, an aging of accounts receivable indicated the following: Age group % of total receivable amount Probability of collection Less than 60 days 70% 98% Between 61 and 120 days 18 85 Between 121 and 180 days 10 50 Over 180 days 2 0 Based on the given information and the result of your audit, answer the following: The accounts receivable as of Dec. 31, 2017 is: P550,916 c. P546,684 P548,800 d. P431,200 The allowance for doubtful accounts as of Dec. 13, 2017 is: a.…
d
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)?