What ratio indicates the percentage of each sales dollar that is available to cover fixed costs...
What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit
Homework Answers
Contribution Margin Ratio
Contribution Margin ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit. Formula of Calculating contribution Margin Ratio define as below:
Contribution Margin Ratio = (Sales - Variable Cost) ÷ Sales
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What ratio indicates the percentage of each sales dollar that is
available to cover fixed costs...
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....
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Operating leverage is a.the difference between sales and variable expense. b.the use of fixed costs to extract higher percentage changes in profits as sales activity changes. c.the portion of each sales dollar available to cover fixed costs and provide for profit. d.visually portrays the relationship between profits and units sold. e.none of these
The greater the ratio of variable costs to sales (i.e. variable cost is a higher percentage...
The greater the ratio of variable costs to sales (i.e. variable cost is a higher percentage of sales), then which of the following is true? each additional sale contributes more to cover fixed costs. less units must be sold to break even. more units must be sold to cover fixed charges. the benefit of conducting a sensitivity analysis is lower.
Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31 1 Sales $424,000.00 2...
Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing $233,200.00 4 Selling 21,200.00 5 Administrative 63,600.00 318,000.00 6 Contribution margin $106,000.00 7 Fixed costs: 8 Manufacturing $5,000.00 9 Selling 4,000.00 10 Administrative 33,400.00 42,400.00 11 Income from operations $63,600.00 Review the contribution margin The excess of sales over variable costs. income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table...
Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of...
Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 50% If the company’s fixed costs are $457,500 per year, what is the dollar amount of each type of candle that must be sold...
Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of...
Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 60%, and large scented candles 10%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 40% What is the weighted-average contribution margin ratio? Weighted-average contribution margin ratio Enter weighted-average contribution margin in percentages % eTextbook and Media If the...
Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40...
Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $88,500. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, Winters Company, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $265,500. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $590,000 per month. Required:...
A 30% gross profit percentage means that: A. for each dollar of sales, the company has...
A 30% gross profit percentage means that: A. for each dollar of sales, the company has a cost of goods sold of seventy cents. B. for each dollar of sales, the company has a gross profit of thirty cents. C. for each dollar of sales, the company has a cost of goods sold of thirty cents. D. A and B
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $78,000. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $338,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $46,200. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $354,200. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $770,000 for the month....
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....
The greater the ratio of variable costs to sales (i.e. variable cost is a higher percentage of sales), then which of the following is true? each additional sale contributes more to cover fixed costs. less units must be sold to break even. more units must be sold to cover fixed charges. the benefit of conducting a sensitivity analysis is lower.
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $78,000. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $338,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $46,200. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $354,200. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $770,000 for the month....
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