Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases. Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution. To calculate: Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

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Answer 1

Question

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

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Answer 2

Question

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Answer 6

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Answer 7

Chapter 5, Problem 4.2GBP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Contribution margin: When we reduces per unit variable cost from the per unit sales price then we get per unit contribution margin and to calculate total contribution margin we multiply the units with per unit contribution.

To calculate:

Contribution Margin, Contribution margin ratio, and total contribution margin ratio.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Solution Summary: The author explains that variable cost directly varies when the output of material changes. Contribution margin and total contribution margin are calculated by multiplying units with per unit contribution.

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