The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per unit /variable cost per unit O c. Variable manufacturing cost ratio + variale selling and administrative cost ratio O d. Selling price per unit- the variable cost per unit O e. The selling price per unit ratio/variable cost per unit ratio CLEAR MY CHOICE

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
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The variable cost ratio is calculated as:
Time let 0.13:27
O a.
None of the given answers
Ob.
The selling price per unit / variable cost per unit
Oc. Variable manufacturing cost ratio + variale selling and administrative cost ratio
O d. Selling price per unit - the variable cost per unit
O e. The selling price per unit ratio / variable cost per unit ratio
CLEAR MY CHOICE
Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is
expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change
in profit?
O a.
Increase by $12,500
b.
Decrease by $2,500
c.
Increase by $6,500'
d.
Increase by $15,000
O e.
Decrease by $6,000
CLEAR MY CHOICE
NEXT PAGE
Б РAGE
Transcribed Image Text:The variable cost ratio is calculated as: Time let 0.13:27 O a. None of the given answers Ob. The selling price per unit / variable cost per unit Oc. Variable manufacturing cost ratio + variale selling and administrative cost ratio O d. Selling price per unit - the variable cost per unit O e. The selling price per unit ratio / variable cost per unit ratio CLEAR MY CHOICE Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $12,500 b. Decrease by $2,500 c. Increase by $6,500' d. Increase by $15,000 O e. Decrease by $6,000 CLEAR MY CHOICE NEXT PAGE Б РAGE
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