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The variable cost ratio is calculated as:

The variable cost ratio is calculated as:

FINANCIAL ACCOUNTING
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 variable cost ratio is calculated as: O a The selling price per unit/variable cost per unit O b. (the selling price per unit/the selling price per unit) – contribution margin ratio Oc. The selling price per unit ratio /variable cost per unit ratio O d. Selling price per unit- the variable cost per unit None of the given answers When performing sales mix analysis, which one of the following is true: O a. Making changes to the sales mix will likely cause no change in the breakeven point Ob Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point Oc Normaly the calculation of the breakeven point for multiproduct is much simpler than that for a sing e product. Od. The sales mix is usually assumed to change. Oe Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin PAGE
Transcribed Image Text:The variable cost ratio is calculated as: O a The selling price per unit/variable cost per unit O b. (the selling price per unit/the selling price per unit) – contribution margin ratio Oc. The selling price per unit ratio /variable cost per unit ratio O d. Selling price per unit- the variable cost per unit None of the given answers When performing sales mix analysis, which one of the following is true: O a. Making changes to the sales mix will likely cause no change in the breakeven point Ob Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point Oc Normaly the calculation of the breakeven point for multiproduct is much simpler than that for a sing e product. Od. The sales mix is usually assumed to change. Oe Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin PAGE
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