Answered: Contribution margin is a. another term…

Contribution margin is a. another term for volume in the "cost-volume-profit" analysis b. the same as sales revenue c. the excess of sales revenue over variable cost d. profit

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.3TIF: Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on...

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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 is

a. another term for volume in the "cost-volume-profit" analysis

b. the same as sales revenue

c. the excess of sales revenue over variable cost

d. profit

Which of the graphs in Figure 5-1 illustrates the nature of a mixed cost?

a. Graph 2

b. Graph 4

c. Graph 1

d. Graph 3

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