Homework Answers
q.1.7. 2.contribution is the contribution made by the sale of a product/ service towards fixed costs first and second to profit.
Contribution amount is first used to cover fixed costs and any amount remaining after that is termed as profits.
q1.9 .2 R0.20.
Variable portion of cost = (difference in costs) / (difference in units)
=>(R85,000-75,000) / (150,000-100,000)
=>R0.20.
q1.10..4. Indirect costs over product / services.
Indirect costs cannot be directly related to product or services, so these cost are allocated to products or services using some appropriate basis, such as Direct labor hours, machine hours etc.
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Q.1.7 (1) Which one of the following statements with regards to contribution is true: (1) Contribution...
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.
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 If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
1. The company manufactures products in Z, the variable costs is euro 6 per 1 unit,...
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Which of the following statements about cost-volume-profit analysis is true? If a company expands operations outside...
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Which of the following statements are true and which are false ? Correct the false one...
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Which of the following statements are true when making decisions using cost volume profit analysis? A....
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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 If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
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