The unit contribution margin is computed by ⦁ subtracting the variable cost per unit from the sales price per unit. ⦁ dividing the sales revenue by variable cost per unit. ⦁ dividing the variable cost per unit by the sales revenue. ⦁ subtracting the sales price per unit from the variable cost per unit.

The unit contribution margin is computed by ⦁ subtracting the variable cost per unit from the sales price per unit. ⦁ dividing the sales revenue by variable cost per unit. ⦁ dividing the variable cost per unit by the sales revenue. ⦁ subtracting the sales price per unit from the variable cost per unit.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MCQ: The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference...

See similar textbooks

Similar questions

The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
The contribution-margin ratio is: Select one: a. unit contribution margin divided by the selling price b. the difference between the selling price and the variable cost per unit. c. unit contribution margin divided by fixed cost per unit. d. variable cost per unit divided by the selling price e. fixed cost per unit divided by variable cost per unit.
The variable cost ratio is calculated as? .a the selling price per unit/the selling price per) contribution margin ratio - (unit B. None of the given answers .c Selling price per unit - the variable cost per unit .d The selling price per unit / variable cost per unit .e The selling price per unit ratio / variable cost per unit ratio
Break-even is the number of units at which? a. total revenue equals price times quantity b. total revenue equals total variable cost c. total revenue equals total fixed cost d. total revenue equals total cost
Answer the following: 1. The slope of line A is equal to the: a. fixed cost per unit. b. selling price per unit. c. profit per unit. d. semivariable cost per unit. e. unit contribution margin. 2. Line C represents the level of: a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost. 3. Line B represents the level of: a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost. 4. The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c. variable cost per unit. d. profit per unit. e. unit contribution margin. 5. Line A is the: a. total revenue line. b. Option 2 c. fixed cost line. d. variable cost line. e. total cost line. f. profit line.
To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs plus desired prof it is divided by contribution margin weighted average unit contribution margin contribution margin ratio unit sales price minus unit contribution margin
1. The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c. variable cost per unit. d. profit per unit. e. unit contribution margin. 2. Line A is the: a. total revenue line. b. Option 2 c. fixed cost line. d. variable cost line. e. total cost line. f. profit line.
The break-even point in unitsis calculated as (fill in the blank) divided by the Contribution Margin in Units. (See your Chapter 20 notes, page 13) Total sales revenue Sales revenue per unit Total variable costs Fixed cost per unit Variable cost per unit Total fixed costs Contribution margin ratio
Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit True False
Answer the following: 1. The unit contribution margin is calculated as the difference between: a. selling price and fixed cost per unit. b. selling price and variable cost per unit. c. selling price and product cost per unit. d. fixed cost per unit and variable cost per unit. e. fixed cost per unit and product cost per unit 2. At the break-even point, the total contribution margin is: a. Zero b. Equal to total fixed costs c. Equal to total costs d. Equal to total variable costs 3. A company with a negative margin of safety also has a (an) a. Operating loss b. Operating profit c. Sales above its break-even point d. Sales equal to its break-even point 4. The break-even point is that level of activity where: a. total revenue equals total cost. b.variable cost equals fixed cost. c. total contribution margin equals the sum of variable cost plus fixed cost. d. sales revenue equals total variable cost.…
The break-even point in CVP analysis is defined as the point 1) where output units equal input units. 2) where total revenue equals fixed costs. 3) where revenues less variable costs equal operating income. 4) where the unit contribution margin equals the selling price less the unit variable cost. 5) where total revenue equals total costs.
True or False. Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio.