Given the following information, what is the contribution margin ratio?SalesVariable expensesFixed ExpensesNet Income44%33%23%56%$828000364320276000$187680

The contribution margin is used to measure the profitability of the individual product or service.It…

Answered: what is the contribution margin ratio?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3Q: Explain how a contribution margin income statement can be used to determine profitability.

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please help me number it from 1-5
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Gross profit margin 2400 how is the estimate operating cost
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What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratio
Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? a. costs and expenses ratio b. contribution margin ratio c. margin of safety ratio d. profit ratio
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Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
Determine the missing amounts. Unit SellingPrice Unit VariableCosts Unit ContributionMargin Contribution MarginRatio 1. $750 $375 $ (a) % (b) 2. $450 $ (c) $153 % (d) 3. $ (e) $ (f) $760 40 %
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Cozy $15.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly $10.00 $ 2.50 $ 7.50 2,100 units 700 units Fixed expenses are $2,520 per month.
1. The highest Contribution Margin is: 2. The highest Contribution Margin Ratio is: Note: Enter up to three decimals. For example, for 36.28^% enter 0.363. 3. Which margin is most useful in evaluating segment viability?a) Contribution margin’b) None of the abovec) Controllable contribution margind) Segment Margin

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