Answered: Contribution margin dividect by Income…

Contribution margin dividect by Income is the: Multiple Choice Contribution margin ratio. Margin of safety. Degree of operating leverage. Sales mix. Break-even point in units.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MCQ: The use of fixed costs to extract higher percentage changes in profits as sales activity changes...

See similar textbooks

Related questions

Q: On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $135...

A: Acquisition of shares of one company by another needs to be recorded in the books of accounts as inv...

Q: The goal of this problem is to identify and implement the proper internal controls on the following ...

A: Internal controls are the systems, rules, and processes implemented by the company to ensure the cor...

Q: For each of the following inventory errors occurring in 2021, determine the effect of the error on 2...

A: The entire amount your organization spent as a cost directly tied to the selling of merchandise is k...

Q: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage o...

A: Introduction Inventory shrinkage is the loss in inventory due to various reasons such as theft, dam...

Q: Determine the most accurate statement about variances. Unfavorable variances normally have a credit ...

A: Variance: A variance is defined as the difference between a budgeted, planned, or standard cost and ...

Q: Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's produ...

A: A job cost sheet is prepared for each job under job order costing system

Q: Multiple Cholce $415,000. $56,814. $204,636. $210,364. $153,550.

A: Solution.. Fixed cost = $153,550 Contribution margin ratio = 37% Break even sales revenue = ?

Q: How much share premium must be reallocated by Pe Inc. due to the dilution to its ownership interest ...

A: In January 1, 2021, Pe Inc. purchased So Corp.’s 61,200 shared of P6,000,000. This represents a 61.2...

Q: Three former Uruguayan presidents recommended the current administration that without abandoning Mer...

A: Competitive advantage under business terms is defined as the element that authorize the firms or bus...

Q: Bank CO approved a loan application of Client ME on January 1, 20A for P3,500,000. Client ME is requ...

A: Direct origination costs are initially added to the carrying amount of the loan and are subsequently...

Q: Ahlia Products Company uses an automated process to clean and polish its souvenir items. For March, ...

A: Cost of Production report- The cost of production report displays all expenditures associated with a...

Q: Which of the following tax remedies is both beneficial to the government and taxpayer? a. Tax lien ...

A: In the era of growing global economy and complexities of tax laws, tax payers quite often tends to m...

Q: Multiple Company had the following liabilities on December 31, 2021. How much should be reported as ...

A: Current liabilities are those short-term liability which is paid within the duration of one year. It...

Q: Charlene, a chemist, worked in a chemistry lab and earned $60,000 per year. Charlene quit in order t...

Q: Carson Manufacturing, Inc., sells a single product for $34 per unit. At an operating level of 8,000 ...

A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.

Q: $ 71,600 30,900 64,700 4,000 $ 18,000 38, 200 71,700 3,300 Cash Accounts receivable, net Inventory P...

A: Cash Dividend - Cash Dividend is the amount paid to the shareholders of company. It is calculated by...

Q: On September 30, 2021, Coronado Corporation received a three-year, 12%, $1,750,000 bank loan. The te...

A: GIVEN On September 30, 2021, CORONADO Corporation received a three-year, 12%, $1,750,000 bank loan...

Q: Cost per Equivalent Unit The cost of direct materials transferred into the Filling Department of Iv...

A: The equivalent units are used in process costing to measure the estimated final quantity for work-in...

Q: Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distributes $900,000 to sh...

A: Earnings & profits (E&P) is the measure of a corporation's economic ability to pay dividends...

Q: $ 14,600 55,000 43,500 223,000 Cash Accounts receivable Inventory Buildings and equipment, net of de...

A: Workings: Minden Company Schedule of Expected Cash collection Cash Sales of May 73200 Colle...

Q: Return on assets d. Current ratio e. Receivables turnover

A: Financial ratios: Financial ratios are performance measurement methods used by the company to Measur...

Q: The exercise price and market price of stock under a fixed compensatory stock option plan are equal ...

A: Employees Stock option Plan Employees stock option plan which is provided to the employees working i...

Q: E9-6 (Algo) Computing and Recording Straight-Line Depreciation [LO 9-3] Yazzie Incorporated bought a...

A: Given, =A machine at the beginning of the year at a cost of $42,000. =The estimated useful life was ...

Q: ACCT 102 - Am I Right?

A: Financing activities in a cash flow statement involves all those cash inflow and outflow of funds to...

Q: Peterson Corporation is considering implementing a JIT production system. The new system would reduc...

A: Just-In-Time production (JIT) system is a managerial approach in which minimum inventories are kept ...

Q: P4.3A (LO 1, 2, 4) Financial Statement The completed financial statement columns of the work- sheet ...

A: 1. Closing Entries - Before making balance sheet some temporary accounts needs to be closed. Hence c...

Q: n April 12, Hong Company agrees to accept a 60-day, 8%, $7,800 note from Indigo Company to extend th...

A: Notes payable is debited by $7,800 since notes payable is a liability and a decrease in liability is...

Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year roun...

A: Solution Margin of safety refers to the difference between actual sales and break even sales . Mana...

Q: Tina taxpayer makes $75000 a year. what are her average and marginal tax rates if she required to p...

A: In order to determine the average tax rate, the total tax obligation is required to be divided by th...

Q: What are your thoughts on the misappropriation of funds? Government budgets prevent public official...

A: Government budget shows the expenditure and total income that government has.it can be either capita...

Q: Exercise 6-10 Multiproduct Break-Even Analysis (LO6-9] Lucido Products markets two computer games: C...

Q: Share capital, nominal IDR 10,000, 45,000 shares issued and outstanding Rp450.000.000 Additional p...

A: Goodwill is the amount paid by acquirer company in excess of the interest acquired in net worth of t...

Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book...

A: Suppose Depreciation Rate = r Value after 8 years = Value after 5 years x (1 - r)^3 Then, Initial Va...

Q: Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: ...

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get...

Q: Indicate the effect that each transaction/event listed here will have on the financial ratio listed ...

A: Introduction Financial ratios are used for the interpretation of the financial and results of the op...

Q: Allie purchased an office building on October 23, 2018 for $150,000. She uses this building in her b...

A: As per MACRS depreciation table, office building qualifies for 39 year, straight line class. As per ...

Q: How much are the deductible expenses for temporary business travel away from home?

A: If you travel away from home overnight on business, you can deduct these travel expenses: Airline, ...

Q: 7. Equipment costing PIM is expected to produce 10. 000 pieces of pipes dur ing its economic life be...

A: The formula: Sinking fund method of depreciation: It is a technique for depreciating assets to repla...

Q: owing information applles the questions displayed be Trey has two dependents, his daughters, ages 14...

A: In this question, we have to calculate the amount of child tax

Q: Tempura Company produces 2,000 parts each year that are used in one of its products. The unit cost o...

A: An accounting method which determines the value of profit which is realized from a operations of bus...

Q: 6. For the year ended December 31, 2021, Haar Inc. reported the following: Net income $300,000 Prefe...

Q: Which of the following is an example of tacit knowledge? [OBJ. 6.2] O An introductory textbook for l...

A: Knowing how to drive

Q: In the texts provided about the major national/ international issues/problems and their possible app...

A: SWITZERLAND SWISS ALPS IS VULNERABLE TO CLIMATE CHANGE: >Attracts lots of tourists around the wo...

Q: Q1- You have the following data for the four products (A,B,C,D): PRODUCT VARIABLE FIXED TOTAL COST N...

A: After variable expenses are removed from revenues, contribution margin analysis examines the residua...

Q: Analyze each of the following situations below and provide your assessment of the potential resoluti...

A: An auditor is a person who is authorized to assess and verify the accuracy of financial papers, as w...

Q: 2) How do disclosure and analysis help users of financial statements assess performance?

A: Financial analysis and reporting can help you answer lots of new important questions about your comp...

Q: Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufac...

A: Solution... FIXED manufacturing overhead costs per unit under absorption costing = Total fixed ...

Q: plz answer all three parts Required information Skip to question [The following information app...

A: Solution:- 1)calculation of return on investments as follows under:- Return on investments = Net Ope...

Q: Ningning Company makes a white liquid substance that is used to cover errors made on printed documen...

A: Solution... Standard quantity = Actual output * standard quantity per unit = 900,000 units * ...

Q: Jones Company has the following balances for the current month: $24,000 Direct materials used Direct...

A: Conversion Costs = Direct labor + overhead costs Where, Overhead costs = indirect labor + productio...

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Contribution margin dividedt by Income is the:
Multiple Choice
Contribution margin ratio.
Margin of safety.
Degree of operating leverage.
Sales mix.
Break-even point in units.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference between sales and total cost. c. difference between sales and operating income. d. difference between sales and total variable cost. e. difference between variable cost and fixed cost.
Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the contribution margin of a composite unit can be calculated by multiplying fixed costs by the contribution margin ratio of a composite unit can only be calculated when the proportion of products sold is the same for all products can be calculated by multiplying fixed costs by the contribution margin ratio of the most common product in the sales mix
Continuous improvement is the governing principle of a lean accounting system. Following are several performance measures. Some of these measures would be associated with a traditional standard-costing accounting system, and some would be associated with a lean accounting system. a. Materials price variances b. Cycle time c. Comparison of actual product costs with target costs d. Materials quantity or efficiency variances e. Comparison of actual product costs over time (trend reports) f. Comparison of actual overhead costs, item by item, with the corresponding budgeted costs g. Comparison of product costs with competitors product costs h. Percentage of on-time deliveries i. First-time through j. Reports of value- and non-value-added costs k. Labor efficiency variances l. Days of inventory m. Downtime n. Manufacturing cycle efficiency (MCE) o. Unused (available) capacity variance p. Labor rate variance q. Using a sister plants best practices as a performance standard Required: 1. Classify each measure as lean or traditional (standard costing). If traditional, discuss the measures limitations for a lean environment. If it is a lean measure, describe how the measure supports the objectives of lean manufacturing. 2. Classify the measures into operational (nonfinancial) and financial categories. Explain why operational measures are better for control at the shop level (production floor) than financial measures. Should any financial measures be used at the operational level? 3. Suggest some additional measures that you would like to see added to the list that would be supportive of lean objectives.
The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
Define and explain contribution margin on a per unit basis.
Contribution margin is a.the same as sales revenue b.the excess of sales over variable costs c.another term for volume in the "cost-volume-profit" analysis d.profit
To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs plus desired prof it is divided by contribution margin weighted average unit contribution margin contribution margin ratio unit sales price minus unit contribution margin
) Contribution margin is selling price plus unit cost. True or false
What can the weighted average contribution margin ratio be used for? To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.
What can the weighted average contribution margin ratio be used for? Multiple Choice To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.
Contribution margin is the difference between total revenue and total variable costs. Select one: O True O False
The cost-volume-profit (CVP) profit-planning model assumes that over the relevant range of activity: Both revenues and total costs are linear. Variable cost per unit decreases because of increases in productivity. Only revenues and fixed costs are linear. Only revenues are linear. Only revenues and variable costs are linear.