Accounting: What the Numbers Mean
Accounting: What the Numbers Mean
12th Edition
ISBN: 9781308841380
Author: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Publisher: McGraw Hill
Question
Book Icon
Chapter 12, Problem 12.11E
To determine

1.

Concept Introduction:

Contribution Margin-

Contribution margin can be defined as the difference between sales and variable costs. The portion i.e. left after deducting variable costs of the product from the sales, it is termed as contribution margin.

Contribution margin is a cost accounting concept which helps company to identify the profit earned on a single product.

It is measured by deducting variable costs from selling price.

  Contribution margin=Selling Price–Variable costs

Contribution margin ratio:

Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

Variable costs:

Variable costs can be defined the cost or the expenses that change with the change in the level of output.

Fixed costs:

Fixed costs can be defined as the cost or the expenses that do not change with the change in the level of output.

To calculate:

Missing amounts for Firm A

To determine

2.

Concept Introduction:

Contribution Margin-

Contribution margin can be defined as the difference between sales and variable costs. The portion i.e. left after deducting variable costs of the product from the sales, it is termed as contribution margin.

Contribution margin is a cost accounting concept which helps company to identify the profit earned on a single product.

It is measured by deducting variable costs from selling price.

  Contribution margin=Selling Price–Variable costs

Contribution margin ratio:

Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

Variable costs:

Variable costs can be defined the cost or the expenses that change with the change in the level of output.

Fixed costs:

Fixed costs can be defined as the cost or the expenses that do not change with the change in the level of output.

To calculate : Missing amounts for Firm B

To determine

3.

Concept Introduction:

Contribution Margin-

Contribution margin can be defined as the difference between sales and variable costs. The portion i.e. left after deducting variable costs of the product from the sales, it is termed as contribution margin.

Contribution margin is a cost accounting concept which helps company to identify the profit earned on a single product.

It is measured by deducting variable costs from selling price.

  Contribution margin=Selling Price–Variable costs

Contribution margin ratio:

Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

Variable costs:

Variable costs can be defined the cost or the expenses that change with the change in the level of output.

Fixed costs:

Fixed costs can be defined as the cost or the expenses that do not change with the change in the level of output.

To calculate:

Missing amounts for Firm C

To determine

4.

Concept Introduction:

Contribution Margin-

Contribution margin can be defined as the difference between sales and variable costs. The portion i.e. left after deducting variable costs of the product from the sales, it is termed as contribution margin.

Contribution margin is a cost accounting concept which helps company to identify the profit earned on a single product.

It is measured by deducting variable costs from selling price.

  Contribution margin=Selling Price–Variable costs

Contribution margin ratio:

Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

Variable costs:

Variable costs can be defined the cost or the expenses that change with the change in the level of output.

Fixed costs:

Fixed costs can be defined as the cost or the expenses that do not change with the change in the level of output.

To calculate:

Missing amounts for Firm C

Blurred answer
Students have asked these similar questions
Total overhead variance is
The UPS Manufacturing Company has a predetermined overhead rate of $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at normal capacity of $300,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for July was $18,600 variable and $12,500 fixed, and standard hours allowed for the product produced in July was 3,500 hours. The total overhead variance is__.
4 POINTS
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education