MANAGERIAL ACCOUNTING CONNECT ACCESS <C>
5th Edition
ISBN: 9781264191635
Author: Noreen
Publisher: MCG CUSTOM
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Question
Chapter 2, Problem 2.1Q
To determine
Concept introduction:
The contribution margin represents the amount of margin that is available from sales after incurring variable costs out. The formulas for contribution margin and contribution margin ratio are as follows:
To indicate: The meaning of the contribution margin ratio and its use in planning business operations.
Expert Solution & Answer
Explanation of Solution
The formula to calculate contribution are:
Contribution margin = Sales - Variable cost
And,
The contribution margin ratio indicates the percentage of contribution margin over sales. in other words, the contribution margin ratio indicates the % of sales that shall be available after subtracting variable costs.
The contribution margin ratio is used by the companies in managerial decisions. A company can use the contribution margin ratio to evaluate the incremental benefits from increased prediction capacity.
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Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for
$140,000.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
a. What is Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $100,750 and the appraised value
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allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
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Chapter 2 Solutions
MANAGERIAL ACCOUNTING CONNECT ACCESS <C>
Ch. 2 - Prob. 2.1QCh. 2 - Prob. 2.2QCh. 2 - Prob. 2.3QCh. 2 - Prob. 2.4QCh. 2 - Prob. 2.5QCh. 2 - Prob. 2.6QCh. 2 - Prob. 2.7QCh. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 1AE
Ch. 2 - Prob. 1TF15Ch. 2 - Prob. 2.1ECh. 2 - Prob. 2.2ECh. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Prob. 2.9ECh. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Prob. 2.14ECh. 2 - Prob. 2.15ECh. 2 - Prob. 2.16ECh. 2 - Prob. 2.17ECh. 2 - Prob. 2.18ECh. 2 - Prob. 2.19PCh. 2 - Prob. 2.20PCh. 2 - Prob. 2.21PCh. 2 - Prob. 2.22PCh. 2 - Prob. 2.23PCh. 2 - Prob. 2.24PCh. 2 - Prob. 2.25PCh. 2 - Prob. 2.26PCh. 2 - Prob. 2.27PCh. 2 - Prob. 2.28PCh. 2 - Prob. 2.29PCh. 2 - Prob. 2.30PCh. 2 - Prob. 2.32CCh. 2 - Prob. 2.33C
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