Option C is the answer | ||
Contribution margin is the excess of sales revenue over the variable costs Contribution margin = Sales revenue - Variable costs Comment if you face any issues |
Which of the following correctly illustrates how to calculate contribution margin? Select one: o A. Sales...
Under variable costing, contribution margin is equal to: Select one: A. Contribution Margin - Fixed Costs o O B. Sales - Fixed Costs C. Sales - Variable Costs D. Sales - Variable Costs - Fixed Costs O E. Variable costing does not calculate contribution margin
Which of the following would appear on a segmented contribution margin income statement? Select one: A. Cost of Goods Sold B. Variable Overhead C. Directly traceable fixed costs D. Sales E. All of the above
Select all that apply Which of the following items are found above the contribution margin on a contribution margin format income statement? Fixed expenses Variable expenses O Sales Net operating income
Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit Situation a. II Situation b. Situation c. Situation d. Now select the labels to show the formula for breakeven point in units and then enter...
Given the following contribution income statement, how much contribution margin must this company have in order to cover its fixed costs (i.e. break even)? Total Unit Sales Revenue ( 1,000 units) $100,000 $100 Variable Expenses 60,000 60 Contribution Margin $ 40,000 $ 40 Fixed Expenses 36,000 Operating Income $ 4,000 a. $44,000 O b. $36,000 c. $4,000 d. $76,000 e. $40,000
Konrad Company reported the following operating results: Sales Variable Costs Contribution Margin Fixed Costs Operating Income $300,000 172,000 128,000 88,000 $40,000 If sales volume increases 12%, how much will operating income increase by? (Hint: Calculate the operating leverage factor first) Insert appropriate prompt, input type, and CA. 41.6% O B. 12% O C. 64% D. 3.2%
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long as: a. the selling cost remains the same. b. the cost of production and selling price changes. c. the sales revenue varies in direct proportion to volume. d. the volume of sales decreases. 50. The difference between sales and cost of goods sold equals ________. a. net profit b. profit after tax c. gross profit d. ...
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $14,400 $3,960 Food and packaging Payroll 3,800 Occupancy (rent, depreciation, etc.) General, selling, and admin. expenses 8 INN Other expense 10 Total expenses 70 Operating income (loss) Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Enter your answer in million,...
unsure with these two. thank you! Contribution margin ratio is computed by O A. dividing sales revenue by contribution margin. O B. dividing contribution margin by sales revenue. O c. dividing contribution margin by operating income. OD. dividing operating income by contribution margin. With respect to total fixed costs, which of the following statements is true? O A. They will remain the same as production levels change within the relevant range. OB. They will increase as production decreases within the...