Homework Answers
A Higher Contribution margin ratio means the company have a higher gross profit due to lower of variable expenses.
Breakeven point will have to direct relation with variable production and contribution margin.
If the Contribution margin ratio is higher than we can recover our fixed cost faster and breakeven point will be always at lower point.
As per above explanation,
Answer = Option 3 = Likely to have a lower breakeven point.
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Question 26 4 pts A company with a higher contribution margin ratio is o either more...
Question 26 A company with a higher contribution margin ratio is either more or less sensitive...
Question 26 A company with a higher contribution margin ratio is either more or less sensitive to changes in sales revenue, depending on other factors. more sensitive to changes in sales revenue likely to have a lower breakeven point. less sensitive to changes in sales revenue
QUESTION 17 A cost structure which relies more heavily on fixed costs makes the company more...
QUESTION 17 A cost structure which relies more heavily on fixed costs makes the company more sensitive to changes in sales revenue. less sensitive to changes in sales revenue. either more or less sensitive to changes in sales revenue, depending on other factors. have a lower break-even point.
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the...
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
4-26 Last year, Jasper Company earned operating income of $22,500 with a contribution margin 14uo!OVlE! Round...
4-26
Last year, Jasper Company earned operating income of $22,500 with a contribution margin 14uo!OVlE! Round answer to 3. four decimal places) ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost. ramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at bution margin per unit? breakeven. What is the price? What is the variable cost per unit? The contri- Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even...
Determine contribution margin ratio, break-even point in dollars, and margin of safety (LO 3, 4, 5),...
Determine contribution margin ratio, break-even point in dollars, and margin of safety (LO 3, 4, 5), AP ES-17 Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016: Sales Sales price Variable costs Fixed costs 2,500 units $40 per unit $24 per unit $19,500 Instructions (a) What is the contribution margin ratio? (b) What is the break-even point in dollars? (c) What is the margin of safety in dollars and as a ratio? (d) If the...
Calculate: 1)Contribution margin (CM)ratio and variable expense ratio. 2)Break-even point (BEP)...
Calculate:
1)Contribution margin (CM)ratio and variable expense ratio.
2)Break-even point (BEP) in UNIT SALES and RM ( ) using equation
method.
3)If sales increase by RM60,000 for the next month and there is no
change in the cost behavior patterns, how much will the company’s
net operating increase by using the Contribution Margin
(RM)Ratio.
4)Based on the original data, if the company wants to earns a
minimum profit of RM300,000, HOW many units will have to be sold to
meet...
Please solve the contribution margin ratio. Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each....
Please solve the contribution margin ratio.
Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax earnings $2,000,000 1,050,000 950,000 785,000 $165,000 Your answer is correct. Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to o decimal places,...
Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a...
Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 Net income $64,920 Required: 1. What is Hammond’s variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution...
Multiple Choice Question 43 The contribution margin ratio is O sales divided by fixed expenses. contribution...
Multiple Choice Question 43 The contribution margin ratio is O sales divided by fixed expenses. contribution margin divided by sales. O sales divided by variable expenses. sales divided by contribution margin.
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. At the breakeven point, total sales revenue equals total costs. If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant.
Question 26 A company with a higher contribution margin ratio is either more or less sensitive to changes in sales revenue, depending on other factors. more sensitive to changes in sales revenue likely to have a lower breakeven point. less sensitive to changes in sales revenue
QUESTION 17 A cost structure which relies more heavily on fixed costs makes the company more sensitive to changes in sales revenue. less sensitive to changes in sales revenue. either more or less sensitive to changes in sales revenue, depending on other factors. have a lower break-even point.
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
4-26
Last year, Jasper Company earned operating income of $22,500 with a contribution margin 14uo!OVlE! Round answer to 3. four decimal places) ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost. ramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at bution margin per unit? breakeven. What is the price? What is the variable cost per unit? The contri- Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even...
Determine contribution margin ratio, break-even point in dollars, and margin of safety (LO 3, 4, 5), AP ES-17 Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016: Sales Sales price Variable costs Fixed costs 2,500 units $40 per unit $24 per unit $19,500 Instructions (a) What is the contribution margin ratio? (b) What is the break-even point in dollars? (c) What is the margin of safety in dollars and as a ratio? (d) If the...
Calculate:
1)Contribution margin (CM)ratio and variable expense ratio.
2)Break-even point (BEP) in UNIT SALES and RM ( ) using equation
method.
3)If sales increase by RM60,000 for the next month and there is no
change in the cost behavior patterns, how much will the company’s
net operating increase by using the Contribution Margin
(RM)Ratio.
4)Based on the original data, if the company wants to earns a
minimum profit of RM300,000, HOW many units will have to be sold to
meet...
Please solve the contribution margin ratio.
Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax earnings $2,000,000 1,050,000 950,000 785,000 $165,000 Your answer is correct. Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to o decimal places,...
Multiple Choice Question 43 The contribution margin ratio is O sales divided by fixed expenses. contribution margin divided by sales. O sales divided by variable expenses. sales divided by contribution margin.
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