The amount of a unit’s sales price that helps to cover fixed expenses is its ____________....
The amount of a unit’s sales price that helps to cover fixed expenses is its ____________.
A.profit
B.variable cost
C.contribution margin
D.stepped cost
Homework Answers
Contribution margin measures whether the product is generating enough revenue to cover its Fixed expenses. Contribution margin is calculated as Sales - Variable cost.If the Contribution margin is equal to Fixed expenses that sales price will be the break-even(No profit No loss).This stage helps the company to fix its selling price so that optimal profit is generated.
So Option C is answer
Add Answer to:
The amount of a unit’s sales price that helps to cover fixed
expenses is its ____________....
Assume the following information: Amount Per Unit Sales$300,000 $40 Variable expenses 120,000 16 Contribution margin 180,000 $24 Fixed expenses.
Assume the following information: Amount Per Unit Sales$300,000 $40 Variable expenses 120,000 16 Contribution margin 180,000 $24 Fixed expenses 79,000 Net operating income$101,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is:
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Fixed expenses Total...
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Fixed expenses Total $400,000 280,000 100,000 What is the total contribution margin? Multiple Choice $300,000 O $120,000 O $380,000 о $20,000
en Parcial Multiple Choice: (22 points) cates the percentage of each sales dollar that is available to cover fixed...
en Parcial Multiple Choice: (22 points) cates the percentage of each sales dollar that is available to cover fixed 1. Which of the fol Which of the following costs is an example of fixed cost a. Hourly wages of machine operators b. Plant manager salary c. Direct materials d.-Direct labor 2. Which ratio indicates the percentage costs and to provide a profit? a. Margin of safety ratio 6. Contribution margin ratio c. Costs and expenses ratio d. Profit ratio 3....
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost...
Cover-to-Cover Company is a manufacturer of shelving for books.
The company has compiled the following cost data, and wants your
help in determining the cost behavior. After reviewing the data,
complete requirements (1) and (2) that follow
.
2. For each cost, determine the fixed portion
of the cost, and the per-unit variable cost. If there is no amount
or an amount is zero, enter "0". Recall that, for N = Number of
Units Produced, Total Costs = (Variable Cost...
Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the...
Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 3,000 shelves $33,000 $4,450 $140,000 6,000 shelves 66,000 7,900 140,000 12,000 shelves 132,000 14,800 140,000 15,000 shelves 165,000 18,250 140,000 1. Determine whether the costs in the table are...
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost...
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Units Produced Total Lumber Cost Total Utilities Cost Total Machine Depreciation Cost 5,000 shelves $50,000 $7,250 $140,000 10,000 shelves 100,000 13,000 140,000 20,000 shelves 200,000 24,500 140,000 25,000 shelves 250,000 30,250 140,000 1. Determine whether the costs in the table are variable, fixed,...
Amount Percent of Sales Sales $137,000 100% Variable expenses 54,800 40% Contribution margin 82,200 60% Fixed...
Amount Percent of Sales Sales $137,000 100% Variable expenses 54,800 40% Contribution margin 82,200 60% Fixed expenses 17,700 Net Operating $65,200 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in sales.
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on...
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 74,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) % % Unit contribution margin Break-even sales (units) Break-even sales (dollars) Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 Sales $374,000 Variable...
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books....
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost 11,000 shelves $132,000 $14,150 $140,000 22,000 shelves 264,000 26,800 140,000 44,000 shelves 528,000 52,100 140,000 55,000 shelves 660,000 64,750 140,000 1. Determine whether the costs...
Big Foot produces sports socks. The company has fixed expenses of $110,000 and variable expenses of...
Big Foot produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. Read the requirements compute contribution Begin by identifying the formula to compute the contribution margin per package. The package. (Enter the amount to the nearest cent.) Sales price per unit Variable cost per unit Contribution margin The contribution margin per package is $ 1.10 Compute the contribution margin ratio. (Enter the ratio as a whole percent.)...
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Fixed expenses Total $400,000 280,000 100,000 What is the total contribution margin? Multiple Choice $300,000 O $120,000 O $380,000 о $20,000
en Parcial Multiple Choice: (22 points) cates the percentage of each sales dollar that is available to cover fixed 1. Which of the fol Which of the following costs is an example of fixed cost a. Hourly wages of machine operators b. Plant manager salary c. Direct materials d.-Direct labor 2. Which ratio indicates the percentage costs and to provide a profit? a. Margin of safety ratio 6. Contribution margin ratio c. Costs and expenses ratio d. Profit ratio 3....
Cover-to-Cover Company is a manufacturer of shelving for books.
The company has compiled the following cost data, and wants your
help in determining the cost behavior. After reviewing the data,
complete requirements (1) and (2) that follow
.
2. For each cost, determine the fixed portion
of the cost, and the per-unit variable cost. If there is no amount
or an amount is zero, enter "0". Recall that, for N = Number of
Units Produced, Total Costs = (Variable Cost...
Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 3,000 shelves $33,000 $4,450 $140,000 6,000 shelves 66,000 7,900 140,000 12,000 shelves 132,000 14,800 140,000 15,000 shelves 165,000 18,250 140,000 1. Determine whether the costs in the table are...
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 74,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) % % Unit contribution margin Break-even sales (units) Break-even sales (dollars) Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 Sales $374,000 Variable...
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost 11,000 shelves $132,000 $14,150 $140,000 22,000 shelves 264,000 26,800 140,000 44,000 shelves 528,000 52,100 140,000 55,000 shelves 660,000 64,750 140,000 1. Determine whether the costs...
Big Foot produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. Read the requirements compute contribution Begin by identifying the formula to compute the contribution margin per package. The package. (Enter the amount to the nearest cent.) Sales price per unit Variable cost per unit Contribution margin The contribution margin per package is $ 1.10 Compute the contribution margin ratio. (Enter the ratio as a whole percent.)...
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