The dollar amount of sales needed to achieve a target operating income is computed by dividingbtarget operating income by the contribution margin ratio True False

Q: a. Calculate the productivity in terms of revenue per dollar of input. (R

A: Meaning of Productivity Productivity means the production of goods with high quality and also at a…

Q: The amount of revenue required to earn a target profit is equal to Total fixed cost divided by…

A: The break even sales are the sales where business earns no profit no loss.

Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?…

A:

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

A: Cost-volume-profit relationship : The Cost Volume-Profit relationship is the study of relationship…

Q: Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant…

A:

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

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

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

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

A: Operating income is calculated after deducting the variable costs and fixed costs from the total…

Q: Which of the following is NOT true regarding an income statement organized according to the…

A: An income statement is a financial statement that tracks both corporate revenue and expenses over a…

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part…

A: Break-even point is the point at which the entity does not make any profit or loss  That is Selling…

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: he mathematical equation for computing required sales to obtain target net income is: Required Sales…

A: Introduction:- One of the most uses of CVP analysis is the determination of the sales required to…

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: TRUE OR FALSE Net income under variable costing method and absorption costing method are always the…

A: If there is change in the ending inventory, net income will be different in both the methods.

Q: What is the contribution margin per unit? contribution margin ratio? Unit sales at break even…

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…

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: Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the…

A: The difference in in economic cost value model and accountant cost value model is:- accountant argue…

Q: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: On a traditional income statement, sales revenue less cost of goods sold equals   Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

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: 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: A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph…

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

Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…

A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…

Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…

A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…

Q: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…

A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…

Q: . To compute the breakeven point using the contribution margin, we get the ratio of  a. Total fixed…

A: Note: Since you have asked multiple questions we will solve the first question for you. If you want…

Q: If unit costs remain unchanged and sales volume and sales price per unit both increase from the…

A: Operating profit is the total income from operations before taxes. The revenue and the money spent…

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

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

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

A: Contribution = Sales - Variable expenses Profit = Contribution - fixed expenses

Q: The contribution margin ratio is equal to: total manufacturing expenses / sales. contribution margin…

A: Contribution margin: Difference between the sales and the variable costs is called contribution…

Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Gross profit variance analysis can be used to study the effect of:    a. Changes in cost of goods…

A: Gross profit is the gross income/revenue left after deducting the cost of goods sold from the net…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis?

A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…

Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…

A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…

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,…