Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution margin ratio

Q: Define and explain the contribution margin ratio.

A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…

Q: How do you calculate contribution margin?

A: The contribution margin can be calculated by deducting the variable cost from the sales revenue.

Q: The variable cost ratio is calculated as:

A: Particular   Sale price per unit   Variable cost per unit   Variable cost ratio…

Q: total contribution .margin

A: Total contribution margin = Total sales - Total variable cost

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: Which of the following does not typically appear on a contribution income statement? Net income.…

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

Q: What is the contribution margin percentage?

A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: What are the three ways contribution margin can be expressed?

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

Q: List the most important assumptions of cost-volume-profit analysis.

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: Assign costs to unitsusing the weighted-averagemethod.

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

Q: Define the term contribution margin.

A: Contribution margin is defined as the term which determines the profitability of the individual…

Q: What is the difference between Cost-Volume Profit graph and Profit-Volume graph?

A: Introduction:- Cost-Volume Profit graph displays the relationship between the cost of units…

Q: What is the company’s contribution margin (CM) ratio?

A: Contribution margin is the amount of sales revenue left after charging variable expenses.…

Q: a. Define and explain contribution margin on a per unit basis.

A: Contribution margin is the amount of sales revenue over and above it's variable costs in the…

Q: Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost allocation and…

A: Constant gross-margin percentage NRV method: Constant gross margin percentage NRV method is a method…

Q: contribution margin ratio

A: The contribution margin is the amount left after subtracting the variable costs from the selling…

Q: Describe the measure based on an index, known as the benefit-cost ratio?

A: A benefit-cost ratio (BCR) is a proportion used to summarize the general connection between the…

Q: what is weighted average cost method?

A: The weighted average cost method is one of the methods to ascertain the unit cost of a product. It…

Q: Define the following concepts: a)Prime cost    b) Non production cost         c)Total cost

A: The term cost refers to the monetary value of expenditure for raw materials, technology, supplies,…

Q: d.    Perpetual system, LIFO cost flow. e.    Periodic system, weighted-average cost flow. f.…

A: Perpetual inventory system - Movement of inventory is recorded on regular basis. Periodic inventory…

Q: Describe the components of contribution margin.

A: Contribution Margin: Contribution Margin refers to the margin of profit expected by the company. The…

Q: Calculate the cost efficiency - profit margin ratios

A: Return on Equity = Net Income available for Shareholders/Total Equity 2019 = 418,916/9,538,652 =…

Q: Define and distinguish between contribution margin per unit and contribution margin percentage?

A: Contribution margin is the difference between the total revenue and total variable costs of a…

Q: Define basic earning power (BEP) ratio

A: The formula to compute basis earning power ratio as follows:

Q: Define the term contribution margin ratio.

A: Contribution margin is the measure of ability of the company to cover its variable costs with the…

Q: Define and describe contribution margin per unit.

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: Draw up a marginal statement that calculates the contribution per uni

A: Marginal costing seems to be a costing method whereby all variable expenses are included in the…

Q: What is the weighted average contribution margin percentage?

A: Contribution margin ratio of the business shows ratio of contribution margin with sales revenue of…

Q: What is percentage flotation cost, F ?

A: The flotation cost percentage is often measured as the company’s flotation costs calculated as a…

Q: c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.…

A: Note 1: Under FIFO  it is presumed sales are made from the earlier unit and under LIFO , it is from…

Q: 1) What is the assumption of cost structure? 2) Calculate contribution Margin

A: A company's overall expenses are comprised of both fixed and variable costs, and together they make…

Q: Explain how to prepare contribution margin income statement.

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: Express the two ways of contribution margin?

A: Contribution margin is the difference between the sales revenue and the variable costs.

Q: calculate contribution margin ratio, breakeven point in amount and breakeven point in units

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: Contribution margin is

A: The formula Contribution= sales - variable cost

Q: Please explain what is meant by the contribution margin.  Also, please provide an example of how the…

A: contribution margin is sales price minus variable cost is called contribution margin, contribution…

Q: What does the term sales mix mean? How is a weighted-average unit contribution margin computed?

A: Contribution Margin is defined as the difference between the sales and the variable cost. In other…

Q: Explain income statement under contribution margin format.

A: Contribution margin: It refers to the difference between the selling price per unit of a product and…

Q: Define contribution margin, contribution margin per unit, and contribution margin percentage.

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: Requirement 1. For each of the following independent situations, calculate the contribution margin…

A: Formula: Contribution Margin (per unit)= Sales per unit-variable cost per unit Break even points…

Q: a) average fixed cost, b) average variable cost, and c) total profit?

A: Markup Percentage = ((Selling Price - Cost)/Costs) * 100 Fixed and Variable cost - We know that…

Q: Explain contribution margin.

A: Contribution Margin is the amount of revenue available after variable costs to cover fixed expenses…

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.