Contribution margin is equal to [A] fixed cost - loss [B] profit + variable cost [C] sales - fixed cost- profit [D] sales - profit

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

Q: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…

A: Margin Of Safety is the difference between Break Even Sales and Actual Sales

Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A.…

A: There are two type of costs being incurred in business. One is fixed costs and other is variable…

Q: The profit equation is: Multiple Choice (Unit price x Q) - (Unit variable costs x Q) - Total fixed…

A:

Q: The margin of safety is equal to:

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…

A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: when total contribution margin equals total fixed cost this indicates operating income

A: The contribution margin is described as that amount which is computed after reducing variable costs…

Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?

A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…

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

A: Your choice is incorrect because option b. Is represent a cost volume profit analysis equation. The…

Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…

A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…

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: Contribution is the difference between sales and the marginal (variable) cost of sales

A: Contribution = Sales - Variable cost

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: revenues equal total fixed costs e given answers on margin equals total costs revenues equal total…

A: A CVP analysis is used to determine the sales volume required to achieve a specified profit level.…

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: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…

A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which one of the following is an example for variable cost? O a. Salary with commission O b.…

A: Variable cost is a cost that keeps on changing with the changes in the level of activity.

Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…

A: At break-even point, there is no profit or no loss.

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: At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: PV ratio is the function of sales and variable costtherefore it can be achieved by

A: The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Q: Sort the following contribution margin income statement line items in the correct order from top…

A: In a Contribution Margin Income Statement, the variable cost are reduced from sales revenue to get…

Q: 22) Which of the following expressions can be used to calculate break-even sales revenue with the…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

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

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

Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

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

A: Cost-Volume profit Analysis:- It is a method of cost accounting which look for the impact of cost…

Q: Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.

A: Cost-volume-profit (CVP) analysis represents the method of cost accounting that shows the impact…

Q: All of the following represents a cost-volume-profit relationship except: O a. Total contribution…

A: we know that, sales - variable cost = contribution  contribution - fixed cost = profit  total cost =…

Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…

A: Net income as per CVP analysis -  sales - variable cost = contribution  contribution - fixed cost =…

Q: 1. Explain why a contribution margin per unit becomes profit per unit above the breakeven point.

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

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: :All of the following represents a cost-volume-profit relationship except Profit = total…

A: For the purpose of profit planning, study of cost volume profit relationship is important for the…

Q: In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense…

A: The intersection of total sales line and total expense line means, Total sales = Total expense

Q: In cost-volume-profit analysis, what is the estimated profit at the break-even point?

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

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: Which of the following expressions can be used to calculate brcak-even sales revenue with the…

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

Q: What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs…

A: Cost is referred as the essential part of the business or a company which looks after the costs such…

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…