Accounting
27th Edition
ISBN: 9781337514071
Author: WARREN
Publisher: Cengage
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Textbook Question
Chapter 21, Problem 21.26EX
Items on variable costing income statement
In the following equations, based on the variable costing income statement, identify the items designated by X:
- a. Net Sales −X = Manufacturing Margin
- b. Manufacturing Margin −X = Contribution Margin
- c. Contribution Margin −X = Income from Operations
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Students have asked these similar questions
The equation for total costs (Y) is:
Y = a+ bX
In this equation, “a” represents:
Net income
Cost of goods sold
Total fixed costs
The level of activity (e.g., the number of units produced)
Total variable costs
Variable cost per unit of X
Total revenue
On the cost- volume -profit graph , the area between the total cost line and the sales line before the break -even point represents
a. The profit area
b. The variable cost amount
c . The contribution margin per unit
d. The fixed cost amount
d. The loss area
please help me number it from 1-5
Chapter 21 Solutions
Accounting
Ch. 21 - Describe how total variable costs and unit...Ch. 21 - How would the following costs be classified...Ch. 21 - Describe how total fixed costs and unit fixed...Ch. 21 - In applying the high-low method of cost estimation...Ch. 21 - If fixed costs Increase, what would be the impact...Ch. 21 - An examination of the accounting records of...Ch. 21 - Prob. 7DQCh. 21 - Both Austin Company and Hill Company had the same...Ch. 21 - How does the sales mix affect the calculation of...Ch. 21 - What does operating leverage measure, and how is...
Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - Contribution margin Lanning Company sells 160,000...Ch. 21 - Contribution margin Weidner Company sells 22,000...Ch. 21 - Prob. 21.3APECh. 21 - Prob. 21.3BPECh. 21 - Prob. 21.4APECh. 21 - Prob. 21.4BPECh. 21 - Prob. 21.5APECh. 21 - Prob. 21.5BPECh. 21 - Operating leverage SungSam Enterprises reports the...Ch. 21 - Prob. 21.6BPECh. 21 - Margin of safety Liu Inc. has sales of 48,500,000,...Ch. 21 - Margin of safety Junck Company has sales of...Ch. 21 - Classify costs Following is a list of various...Ch. 21 - Identify cost graphs The following cost graphs...Ch. 21 - Prob. 21.3EXCh. 21 - Identify activity bases From the following list of...Ch. 21 - Identify fixed and variable costs Intuit Inc...Ch. 21 - Relevant range and fixed and variable costs Vogel...Ch. 21 - High-low method Ziegler Inc. has decided to use...Ch. 21 - High-low method for a service company Boston...Ch. 21 - Contribution margin ratio a. Yountz Company...Ch. 21 - Contribution margin and contribution margin ratio...Ch. 21 - Prob. 21.11EXCh. 21 - Break-even sales Anheuser-Busch InBev Companies,...Ch. 21 - Break even sales Currently, the unit .selling...Ch. 21 - Prob. 21.14EXCh. 21 - Prob. 21.15EXCh. 21 - Prob. 21.16EXCh. 21 - Prob. 21.17EXCh. 21 - Prob. 21.18EXCh. 21 - Prob. 21.19EXCh. 21 - Prob. 21.20EXCh. 21 - Prob. 21.21EXCh. 21 - Break-even sales and sales mix for a service...Ch. 21 - Margin of safety a. If Canace Company, with a...Ch. 21 - Prob. 21.24EXCh. 21 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 21 - Items on variable costing income statement In the...Ch. 21 - Variable costing income statement On July 31, the...Ch. 21 - Appendix Absorption costing income statement On...Ch. 21 - Classify costs Seymour Clothing Co. manufactures a...Ch. 21 - Prob. 21.2APRCh. 21 - Prob. 21.3APRCh. 21 - Prob. 21.4APRCh. 21 - Sales mix and break-even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Classify costs Cromwell Furniture Company...Ch. 21 - Prob. 21.2BPRCh. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Prob. 21.4BPRCh. 21 - Prob. 21.5BPRCh. 21 - Contribution margin, break-even sales,...Ch. 21 - Prob. 21.1CPCh. 21 - Communication Sun Airlines is a commercial airline...Ch. 21 - Break-even analysis Somerset Inc. has finished a...Ch. 21 - Variable costs and activity bases in decision...Ch. 21 - Variable costs and activity bases in decision...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard costarrow_forwardIn the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?arrow_forwardWhich of the following graphs illustrates how total fixed costs be have with changes in total units producedarrow_forward
- Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.arrow_forwardThe amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped costarrow_forwardWhen using the product cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup? Oa. total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit b. desired profit Oc. total costs plus desired profit Od. total selling and administrative expenses plus desired profitarrow_forward
- In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following? Multiple Choice The break-even point The total fixed expenses The total variable expenses The total contribution marginarrow_forwardThe number of units produced, or the number of units sold describes: a. Cost behavior b. Activity level c. Sales mix d. Contribution marginarrow_forwardWhich of the following best describes a fixed cost? a.Cost representing a fixed proportion of total costs b.Cost directly related to output c.Cost that remains at the same level up to a particular level of output . d.Cost that remains at the same level when output increases.arrow_forward
- Which cost accounting method assumes that the cost of production is driven by the number of units produced? A. Activity-Based Costing (ABC)B. Standard CostingC. Absorption CostingD. Variable Costingarrow_forwardThe amount of revenue required to earn a target profit is equal to Total fixed cost divided by contribution margin Total fixed cost divided by the contribution margin ratio Targeted profit divided by the contribution margin ratio Total fixed cost- plus targeted profit divided by contribution margin ratio Targeted profit divided by the variable cost ratioarrow_forwardThe difference between total sales in dollars and total variable expenses is called: a. net profit b. net operating income c. the gross margin O d. the contribution marginarrow_forward
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