Homework Answers
Answer: TRUE
A negative Contribution MArgin indicates that the firm Variable cost is more than the revenue. it Results in the Loss of Each product produced even without taking the Fixed cost element. IF Product line has a negative Contribution MArgin the Product Line Should be Discontinued.
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From a purely financial standpoint, if a product line has a negative contribution margin, the product line should b...
An opportunity cost is a past cost. O True O False From a purely financial standpoint,...
An opportunity cost is a past cost. O True O False From a purely financial standpoint, if a product line has a negative contribution margin, the product line should be discontinued. True False On the direct materials budget, the total quantity of direct materials to purchase is computed as beginning inventory of DM A. units to be produced + desired end inventory of DM O B. units to be produced desired end inventory of DM beginning inventory of DM. C....
5. From a purely economic standpoint, should prostitution be licensed, legalized and taxed? Why or why...
5. From a purely economic standpoint, should prostitution be licensed, legalized and taxed? Why or why not?
MC Qu. 3-30 A product has a contribution margin of... A product has a contribution margin...
MC Qu. 3-30 A product has a contribution margin of... A product has a contribution margin of $9 per unit and a selling price of $20 per unit. Fixed costs are $45,000. Assuming new technology increases the unit contribution margin by 60 percent but increases total fixed costs by $16,920, what is the new breakeven point in units? Multiple Choice 0 5,400 units 0 5,000 units 0 4,300 units C ) 5,940 units
The contribution margin format income statement is not widely used for external financial reporting, but is...
The contribution margin format income statement is not widely used for external financial reporting, but is allowed by GAAP. true or false
A product line should be dropped when a. All of the answer choices are correct. b....
A product line should be dropped when a. All of the answer choices are correct. b. has unavoidable fixed costs. c. it has a positive contribution margin. d. there will be a positive change in income if the product line is dropped.
The decision to drop a product line is based the following factors, except: a. contribution margin...
The decision to drop a product line is based the following factors, except: a. contribution margin lost is less than fixed costs avoided b. contribution margin lost is greater than fixed costs avoided c. decline in sales of the company's other products d. loss of customers who purchase other products In a make-or-buy decision, the relevant costs are typically? a. costs of buying the product from the outside source b. variable costs of making the product that can be avoided...
Based on the below information, calculate the weighted average contribution margin. Product B Product A $10...
Based on the below information, calculate the weighted average contribution margin. Product B Product A $10 15% Contribution Margin Production Ratio $20 Product C $40 50% 35% The weighted average contribution margin is: Select one: O a. $24.5 O b. $26.5 c. $28.5 O d. $30.5
QUESTION 17 Wolowit Company's product has contribution margin eru of 562.50 and a contribution margin ratio...
QUESTION 17 Wolowit Company's product has contribution margin eru of 562.50 and a contribution margin ratio of 25. When the per unit selling price of the product? TTTT Paragraph Aral 12 TT.
From a medical standpoint, a bacterium that can and will form capsules is considered to be...
From a medical standpoint, a bacterium that can and will form capsules is considered to be harmless and should not be of concern, as the bacterium has decreased its ability to invade a human host True False PreviousNext
The managers of Riverside Designs are considering dropping one of their product lines. The product line...
The managers of Riverside Designs are considering dropping one of their product lines. The product line typically has the following revenue and costs: Sales $125,000 Variable costs 85,000 Contribution margin 40,000 Fixed costs 45.000 Operating loss $ (5,000) If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $6,000 of additional contribution margin from the expansion of other product lines. If Riverside discontinues the product line, the effect on overall...
An opportunity cost is a past cost. O True O False From a purely financial standpoint, if a product line has a negative contribution margin, the product line should be discontinued. True False On the direct materials budget, the total quantity of direct materials to purchase is computed as beginning inventory of DM A. units to be produced + desired end inventory of DM O B. units to be produced desired end inventory of DM beginning inventory of DM. C....
MC Qu. 3-30 A product has a contribution margin of... A product has a contribution margin of $9 per unit and a selling price of $20 per unit. Fixed costs are $45,000. Assuming new technology increases the unit contribution margin by 60 percent but increases total fixed costs by $16,920, what is the new breakeven point in units? Multiple Choice 0 5,400 units 0 5,000 units 0 4,300 units C ) 5,940 units
Based on the below information, calculate the weighted average contribution margin. Product B Product A $10 15% Contribution Margin Production Ratio $20 Product C $40 50% 35% The weighted average contribution margin is: Select one: O a. $24.5 O b. $26.5 c. $28.5 O d. $30.5
QUESTION 17 Wolowit Company's product has contribution margin eru of 562.50 and a contribution margin ratio of 25. When the per unit selling price of the product? TTTT Paragraph Aral 12 TT.
The managers of Riverside Designs are considering dropping one of their product lines. The product line typically has the following revenue and costs: Sales $125,000 Variable costs 85,000 Contribution margin 40,000 Fixed costs 45.000 Operating loss $ (5,000) If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $6,000 of additional contribution margin from the expansion of other product lines. If Riverside discontinues the product line, the effect on overall...
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