Regarding the profit margin ratio, which of the following statements is incorrect? The higher the profit...
Regarding the profit margin ratio, which of the following statements is incorrect? The higher the profit margin ratio, the more sales dollars end up as profit. The profit margin ratio is computed by dividing net sales by net income. The profit margin ratio shows how much net income a business earns on every $1.00 of sales. The profit margin ratio focuses on the profitability of a company and is often reported in the business.
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Regarding the profit margin ratio, which of the following
statements is incorrect? The higher the profit...
Franklin Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Franklin Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 60 10% $126,000 Required Use the contribution margin ratio approach and consider each requirement separately. E a. What is the break-even point in dollars? In units? b. To obtain a profit of $42,000, what must the sales be in dollars? In units? E c. If the sales price increases to $72 and variable costs do not change, what is the new...
Vernon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Vernon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs 60 10% $216,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? C. If the sales price increases to $72 and variable costs do not change, what is the new break- even point...
Perez Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Perez Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 56 25% $350,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $42,000, what must the sales be in dollars? In units? c. If the sales price increases to $70 and variable costs do not change, what is the new break-even point...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs s 60 259 $360,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $30,000, what must the sales be in dollars? In units? c. If the sales price increases to $75 and variable costs do not change, what is the new break-even point...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 60 20% $384,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,000, what must the sales be in dollars? In units? c. If the sales price increases to $64 and variable costs do not change, what is the new break-even point...
Walton Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...
Walton Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 40 209 $240,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $40,000, what must the sales be in dollars? In units? c. If the sales price increases to $64 and variable costs do not change, what is the new break-even point...
Calculate the Gross Profit Margin using the information provided. What is the GPM for Apple? (7.5...
Calculate the Gross Profit Margin using the information provided. What is the GPM for Apple? (7.5 pts) What is the GPM for Microsoft? (7.5 pts) Which company has the higher GPM? (5pts) Does higher sales guarantee greater profits? (5 pts) In 2014, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple is a better marketer, right? Sales...
E21-31 Calculating contribution margin ratio, preparing contribution margin incone statements Bluvid produces a high-end, progressive-scan DVD...
E21-31 Calculating contribution margin ratio, preparing contribution margin incone statements Bluvid produces a high-end, progressive-scan DVD player with up to 160-hour recording capacity and MP3 playback capability. Relevant data for the DVD players sold by this company in June 2013 are as follows: Unit selling price of DVD player Unit variable costs Total monthly fixed costs Units sold $ 500 300 200,000 1,600 Requirements 1. Prepare a contribution margin income statement for the month ending June 30, 2013 2. Calculate...
Which of the following statements regarding Company A is incorrect? Multiple Choice Which of the following...
Which of the following statements regarding Company A is incorrect? Multiple Choice Which of the following statements regarding Company A is incorrect? If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units. If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20...
the dropdown option for the first question: net profit margin OR operating profit margin // debt...
the
dropdown option for the first question: net profit margin OR
operating profit margin // debt ratio OR equity multiplier.
the dropdown option for the second question: shareholder and
dividend management OR use of debt versus equity financing //
management of its revenues and depreciation methods OR control over
its expenses
9. An analysis of company performance using DuPont analysis A sheaf of papers in his hand, your friend and colleague, Jason, steps into your office and asked the following...
Franklin Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 60 10% $126,000 Required Use the contribution margin ratio approach and consider each requirement separately. E a. What is the break-even point in dollars? In units? b. To obtain a profit of $42,000, what must the sales be in dollars? In units? E c. If the sales price increases to $72 and variable costs do not change, what is the new...
Vernon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs 60 10% $216,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? C. If the sales price increases to $72 and variable costs do not change, what is the new break- even point...
Perez Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 56 25% $350,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $42,000, what must the sales be in dollars? In units? c. If the sales price increases to $70 and variable costs do not change, what is the new break-even point...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs s 60 259 $360,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $30,000, what must the sales be in dollars? In units? c. If the sales price increases to $75 and variable costs do not change, what is the new break-even point...
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 60 20% $384,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,000, what must the sales be in dollars? In units? c. If the sales price increases to $64 and variable costs do not change, what is the new break-even point...
Walton Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 40 209 $240,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $40,000, what must the sales be in dollars? In units? c. If the sales price increases to $64 and variable costs do not change, what is the new break-even point...
E21-31 Calculating contribution margin ratio, preparing contribution margin incone statements Bluvid produces a high-end, progressive-scan DVD player with up to 160-hour recording capacity and MP3 playback capability. Relevant data for the DVD players sold by this company in June 2013 are as follows: Unit selling price of DVD player Unit variable costs Total monthly fixed costs Units sold $ 500 300 200,000 1,600 Requirements 1. Prepare a contribution margin income statement for the month ending June 30, 2013 2. Calculate...
the
dropdown option for the first question: net profit margin OR
operating profit margin // debt ratio OR equity multiplier.
the dropdown option for the second question: shareholder and
dividend management OR use of debt versus equity financing //
management of its revenues and depreciation methods OR control over
its expenses
9. An analysis of company performance using DuPont analysis A sheaf of papers in his hand, your friend and colleague, Jason, steps into your office and asked the following...
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