If sales price remained the same and variable costs increased the contribution margin would Increase Decrease...
Homework Answers
If sale price same and variable cost increase then contribution margin would be decrease.
Example if sales 10 and variable cost 5 then contribution margin = (10-5) = 5 per unit
ANd if sales 10 and variable cost 6 then contribution margin (10-6) = 4 per unit
so answer is b) Decrease
Add Answer to:
If
sales price remained the same and variable costs increased the
contribution margin would
Increase
Decrease...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio =...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio = Contribution margin / sales 3) Break-even point in units = Fixed cost / unit contribution margir 4) Break-even point in dollars = Fixed cost / contribution margin ra 5) Margin of Safety = Actual Revenue less Breakeven Sales Rever 6) Total Sales = Number of units sold x selling price per unit 7) Total Variable cost = Number of units sold x variable cost...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C)...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C) variable costs as a percentage of sales decrease. D) variable costs as a percentage of sales increase.
Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement....
Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement. (1) Contribution margin ratio will with an increase in sales volume. (2) Fixed cost per unit will with an increase in sales volume (within the relevant range). (3) A decrease in the contribution margin will cause the break-even point to (4) Variable cost per unit will with a decrease in sales volume. (5) An increase in fixed costs will cause the break-even point to...
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A....
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement:...
Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement: 1. Contribution margin ratio will _________ with an increase in sales volume. 2. Fixed cost per unit will_______ with an increase in sales volume (within the relevant range) 3. A decrease in the contribution margin will cause the break-even point to __________. 4. Variable cost per unit will _________ with a decrease in sales volume. 5. An increase in fixed costs will cause the...
Answer these questions below: 1. Sales - Total Variable Costs A. Operating Profit B. Sales C....
Answer these questions below: 1. Sales - Total Variable Costs A. Operating Profit B. Sales C. Total Variable Cost D. Contribution Margin 2. If everything else remains the same and selling price is increased then the break even point will A. Increase B. Decrease C. Not change 3. If everything else remains the same and fixed cost is increased then the break even point will A. Increase B. Decrease C. Not change
A Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin...
A
Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 9.09 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget increase monthly sales by $17,500. Calculate the increase or decrease in net operating in Net operating income 1-b. Should the advertising budget be increased? Yes O No Hints...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $30,100 Food and packaging $11,409 Payroll 7,600 Occupancy (rent, depreciation, etc.) 5,791 General, selling, and administrative expenses 4,400 $29,200 Income from operations $900 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in...
Wright Corporation's contribution format Income statement for last month appears below. Sales Variable expenses Contribution margin...
Wright Corporation's contribution format Income statement for last month appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 87,000 35.400 51.600 16.200 $ 35,400 There were no beginning or ending Inventories. The company produced and sold 3,000 units during the month. The company has an opportunity to secure a special order of 870 units If It is willing to drop the selling price on these units to $27. Costs of securing the special order would be...
(d) Assume that variable costs increase to 45% of the current sales price and fixed costs...
(d) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6%, what would be the new annual operating income? (Round sales price to 2 decimal places, eg. 52.75 and final answer to decimal places, eg. 5,275.) The new annual operating income Toython 3 of 4...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio = Contribution margin / sales 3) Break-even point in units = Fixed cost / unit contribution margir 4) Break-even point in dollars = Fixed cost / contribution margin ra 5) Margin of Safety = Actual Revenue less Breakeven Sales Rever 6) Total Sales = Number of units sold x selling price per unit 7) Total Variable cost = Number of units sold x variable cost...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C) variable costs as a percentage of sales decrease. D) variable costs as a percentage of sales increase.
Fill in the blanks with increase, decrease, or remain the same to correctly complete each statement. (1) Contribution margin ratio will with an increase in sales volume. (2) Fixed cost per unit will with an increase in sales volume (within the relevant range). (3) A decrease in the contribution margin will cause the break-even point to (4) Variable cost per unit will with a decrease in sales volume. (5) An increase in fixed costs will cause the break-even point to...
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
Answer these questions below: 1. Sales - Total Variable Costs A. Operating Profit B. Sales C. Total Variable Cost D. Contribution Margin 2. If everything else remains the same and selling price is increased then the break even point will A. Increase B. Decrease C. Not change 3. If everything else remains the same and fixed cost is increased then the break even point will A. Increase B. Decrease C. Not change
A
Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 9.09 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget increase monthly sales by $17,500. Calculate the increase or decrease in net operating in Net operating income 1-b. Should the advertising budget be increased? Yes O No Hints...
Wright Corporation's contribution format Income statement for last month appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 87,000 35.400 51.600 16.200 $ 35,400 There were no beginning or ending Inventories. The company produced and sold 3,000 units during the month. The company has an opportunity to secure a special order of 870 units If It is willing to drop the selling price on these units to $27. Costs of securing the special order would be...
(d) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6%, what would be the new annual operating income? (Round sales price to 2 decimal places, eg. 52.75 and final answer to decimal places, eg. 5,275.) The new annual operating income Toython 3 of 4...
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