How will a company's contribution margin be affected by an investment in equipment that increases fixed...
How will a company's contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost?
Homework Answers
The contribution margin will increase.
Reason:-
Contribution margin = Sales- variable cost.
Variable costs will go down because of equipment purchase. Hence, the contribution margin will increase.
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How will a company's contribution margin be affected by an
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the drop down list has contribution margin contribution margin income statement contribution margin ratio fixed cost...
the
drop down list has
contribution margin
contribution margin income statement
contribution margin ratio
fixed cost
full absorption costing
linearity assumption
mixed cost
relevent range
scattergraph
step variable cost
unit contribution margin
variable cost
variable costing
none of these is correct
some terms may repeat
Check my work Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) 0.3 points...
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Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income? $94,700 $160,000 $29,400 C) $130,600 $189,400 The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $179,000. $990,000 Sales...
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Contribution margin Contribution margin income statement Contribution margin ratio Fixed cost Full absorption costing Linearity assumption Mixed cost Relevant range Scattergraph Step-variable cost Unit contribution margin Variable cost Variable costing None of these are correct Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) Term Definition A. The way in which total cost behaves or changes, when some measure...
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the
drop down list has
contribution margin
contribution margin income statement
contribution margin ratio
fixed cost
full absorption costing
linearity assumption
mixed cost
relevent range
scattergraph
step variable cost
unit contribution margin
variable cost
variable costing
none of these is correct
some terms may repeat
Check my work Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) 0.3 points...
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