Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b. Breakeven point O c. Profit when margin of safety is given O d. For all options provided
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A: The formula to calculate the given ratios are:
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- In a profit diagram, the safety margin can either be expressed in kronor or some form of volume. choose an alternative True FalseWhich of the following is the indicator of the rate at which company is earning profit? Select one: a. Margin of safety b. All options are correct c. Contribution margin d. Profit volume ratioWhich of the following option shows the rate at which company is earning profit? Select one: a. All options are correct b. Margin of safety c. Contribution margin d. Profit volume ratio
- Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFOc. Calculate the profitability ratio which includes gross profit margin, operating profit margin, net profit margin, and NOPAT marginProfit Margin for ROA versus ROCE. Describe the difference between the profit margin for ROA and the profit margin for ROCE. Explain why each profit margin is appropriate for measuring the rate of ROA and the rate of ROCE, respectively. Please, don't copy the answer from the book, explain with your words.
- Which of the following ratios is always the lowest? a. The net profit margin b. The gross profit margin c. The operating margin d. The EBITDA ratioWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodProfits -to-Sales relationships are defined as profit margins. Select one:a. Trueb. False
- In the cost-volume- profit graph (above), what is represented by the point marked "B"? Question 2 options: Breakeven point Fixed expenses Operating income area Operating loss areaIn the cost-volume- profit graph (above), what is represented by the point marked "D"? Question 3 options: Operating loss area Operating income area Breakeven point Fixed expensesIndicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write an “X” on the appropriate and explained Effects in Gross Profit Favorable Unfavorable A. Volume - Increase - Decrease B. Selling Price – Increase - Decrease C. Unit Cost - Increase - Decrease