When the return on sales (also known as net profit margin) is negative, what does this mean? Group of answer choices Costs and expenses combined are bigger than sales Sales is smaller compared to net income The tax amount is higher than sales Cost of goods and operating expenses are higher than sales

When the return on sales (also known as net profit margin) is negative, what does this mean? Group of answer choices Costs and expenses combined are bigger than sales Sales is smaller compared to net income The tax amount is higher than sales Cost of goods and operating expenses are higher than sales

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

What can the weighted average contribution margin ratio be used for? Multiple Choice To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.
On the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. None of the given answers O b. Increase in number of units sold O c. Decrease in variable cost per unit O d. Decrease in selling price per unit Oe. Decrease in fixed costs
If a company decreases its selling price for its products. The Increase? O Total cost O Cost plus pricing O Break even quantity. O Profit it
Can you have a negative gross profit and if yes, explain why.
Target profit is added to what other financial statement line item, or element, to determine the numerator in the overall target contribution margin (CM) calculation in break-even analysis? Variable costs Fixed costs Net income after taxes Operating profit
Which of these expressions is correct? (A Profit plus operating expenses = sales (B) all of these are correct C Gross profit less operating expenses = net profit (D) Sales plus cost of sales less operating expenses = net profit
On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answers
If the percentage change in operating income resulting from a given percentagechange in sales is higher than the percentage change in sales itself, thena. an increase in the selling price would not alter the contribution marginper unit.b. variable costs per unit have increased.c. variable costs have decreased in total.d. the company has operating leverage.e. the company has no fixed costs.
Which of the following is not another way of describing the marginal propensity to consume? a. autonomous consumption spending b. the slope of the consumption function c. the amount by which real consumption spending rises when real disposable income increases by one dollar d. MPC e. the change in real consumption spending divided by the change in real disposable income
Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Continue LA $ Eliminate LA Net Income Increase (Decrease)
Which of the following items will not cause the company's ROA to increase? Multiple Choice O O Reducing costs. Reducing company assets without impacting sales. Increasing company assets. Increasing the selling price per unit. $
At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed expenses = variable expenses c) sales + variable expenses = contribution margin d) contribution margin + fixed expenses = net income

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