Homework Answers
Answer
4. At the breakeven point, total sales revenue equals total cost.
The breakeven point is a level of production at which total cost will equal total sales revenue. At the breakeven point, there will be no loss and no profit.
1. The contribution margin is the difference between sales and variable cost, it has nothing to do with the fixed cost. To increase the contribution margin you can either decrease total variable cost or increase the selling price per unit.
2. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering the fixed cost. The contribution margin is sales less variable cost.
3. If a company expands operation outside of its relevant range, variable cost per unit and total fixed cost will be constant. Variable cost per unit is constant but the total variable cost is not constant and the total fixed cost is constant but per-unit fixed cost is not constant.
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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,...
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? If a company expands operations outside...
Which of the following statements about cost-volume-profit analysis is true? If a company expands operations outside of its relevant range, variable cost per unit could change, but total fed costs will always stay constant. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs To increase the contribution margin ratio, a manager should decrease fixed cost At the breakeven point, total sales revenue equals total costs. Identify the cost scenario that...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit margin. O 2) excludes variable selling costs from its calculation. 3) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. 4) equals sales revenue minus variable costs. Question 2 (1 point) Contribution margin is 1) the amount of revenue remaining after deducting fixed costs. O2) available to cover fixed costs and contribute to income for the company. 3) sales...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Contribution margin Contribution margin income statement Contribution margin ratio Fixed cost Full absorption costing Linearity assumption...
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...
Please find the following: Contribution margin per unit Contribution margin ratio Fixed Cost Fixed Cost per...
Please find the following:
Contribution margin per unit
Contribution margin ratio
Fixed Cost
Fixed Cost per year
Breakecen Sales
Cullumber Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $100 throughout the country to loyal alumni of over 3,300 schools. Cullumber's variable costs are 40% of sales, fixed costs are $116,000 per month. (a1) * Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38...
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...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
PA5-4 Predicting predicting Cost Behavior, Calculating Contribution Marain and Contribution Margin Ratio, Calculating Profit asidio, Inc....
PA5-4 Predicting predicting Cost Behavior, Calculating Contribution Marain and Contribution Margin Ratio, Calculating Profit asidio, Inc. produces one model of mountain bike. Partial information for the company LO follows: Cost Data Number of Bikes Produced and Sold 625 800 1,050 $125,000 Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $581.25 Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio...
Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result...
Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $315 each. The company has a 30% income tax rate. $ 139,500 101.750 181,350 130,200 Variable production costs Plastic for casing Wages of assembly workers Drum Stands Variable selling costs Sales Comissions Fixed manufacturing costs Taxes on factory...
Which of the following statements about cost-volume-profit analysis is true? If a company expands operations outside of its relevant range, variable cost per unit could change, but total fed costs will always stay constant. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs To increase the contribution margin ratio, a manager should decrease fixed cost At the breakeven point, total sales revenue equals total costs. Identify the cost scenario that...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit margin. O 2) excludes variable selling costs from its calculation. 3) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. 4) equals sales revenue minus variable costs. Question 2 (1 point) Contribution margin is 1) the amount of revenue remaining after deducting fixed costs. O2) available to cover fixed costs and contribute to income for the company. 3) sales...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
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...
Please find the following:
Contribution margin per unit
Contribution margin ratio
Fixed Cost
Fixed Cost per year
Breakecen Sales
Cullumber Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $100 throughout the country to loyal alumni of over 3,300 schools. Cullumber's variable costs are 40% of sales, fixed costs are $116,000 per month. (a1) * Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38...
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...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
PA5-4 Predicting predicting Cost Behavior, Calculating Contribution Marain and Contribution Margin Ratio, Calculating Profit asidio, Inc. produces one model of mountain bike. Partial information for the company LO follows: Cost Data Number of Bikes Produced and Sold 625 800 1,050 $125,000 Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $581.25 Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio...
Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,650 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $315 each. The company has a 30% income tax rate. $ 139,500 101.750 181,350 130,200 Variable production costs Plastic for casing Wages of assembly workers Drum Stands Variable selling costs Sales Comissions Fixed manufacturing costs Taxes on factory...
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