7. Which of the following is a correct formula to calculate contribution margin ratio (CM ratio)?      a. Contribution margin/Sales       b. Contribution margin/Variable cost       c. Contribution margin/Fixed cost       d. Sales/Contribution margin

Q: The amount of revenue required to earn a target profit is equal to Total fixed cost divided by…

A: The break even sales are the sales where business earns no profit no loss.

Q: Contribution margin per unit is the amount by which a products unit selling price exceeds its…

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

Q: Contribution margin is

A: Contribution margin is an important term used in cost-volume-profit analysis. It is the excess of…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: on the cost volume profit graph, the area between the total costline and the sales line before the…

Q: Matching Following are a number of key terms and concepts introduced in thechapter, along with a…

A: Cost Accounting is a form of managerial accounting in which all the costs whether variable or fixed…

Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…

A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost

Q: Which of the following items would  not be found on a contribution format income statement?…

A: Cost-Volume-Profit analysis is the technique of managerial accounting, which examines that how…

Q: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…

A: Variable cost ratio = Variable cost per unit / Selling price per unit

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: Contribution margin is selling price plus unit cost. True or false

A: Contribution Margin is the income before deduction of any fixed cost. Contribution margin = Selling…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: contribution margin is sales made less variable cost incurred is contribution margin

Q: Help question 10

A: Contribution margin: contribution margin is calculated by deducting variable expenses from sales…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Sales - fixed…

A: Cost-volume-profit   equation: Profit = Revenue – Fixed Costs – Variable Costs

Q: The three most common cost behavior classifications are a. variable costs, product costs, and sunk…

A: Cost volume profit analysis includes various techniques that help in the decision-making of the…

Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Contribution margin ratio is the proportion of contribution in relation to the Net Income Variable…

A: SOLUTION- CONTRIBUTION MARGIN RATIO IS THE RATIO SHOWING THE CONTRIBUTION MARGIN IN TERMS OF…

Q: East Coast West Coast Sales V Variable cost of goods sold v Manufacturing margin v Variable selling…

A: Contribution means sales minus varibale cost and when we divide contribution with sale , we get…

Q: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…

A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…

Q: Which of the following statements about CVP analysis is true? O a. Operating income calculations in…

A: Selling price:  Selling price is a price set by the supplier at which he is ready to sell his…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: This is part of break-even analysis.

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: :The variable cost ratio is calculated as contribution margin ratio - (the selling price per…

A: Variable cost Ratio= Variable Cost per unit/ Selling price per unit

Q: Answer the following: 1.  The slope of line A is equal to the:  a. fixed cost per unit. b. selling…

A: Using fixed cost , total cost and sales revenue, the CVP chart graphically represents the…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution…

A: Contribution = Sales - Variable expenses Profit = Contribution - fixed expenses

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio / variable…

A: Contribution is the amount obtained after deducting the variable costs from the sales.

Q: The unit contribution margin is computed by ⦁    subtracting the variable cost per unit from the…

A: Variable costs are the costs that tend to change with the change in production level.

Q: The formula for Contribution is Select one: a. Fixed cost + loss b. Sales - Variable cost c. Fixed…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and…

A: Definition:  Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…