Which of the following would not be anacceptable way to express contributionmargin? *O 100% minus variable cost percentageUnit selling price minus unit variablecostsContribution margin per unit dividedby unit selling priceVariable costs divided by total salesrevenueNone of the above The equation which reflects a CVPincome statement is *Sales = Cost of goods sold +Operating expenses + Net incomeSales + Fixed costs = Variable costs +Net incomeSales - Variable costs + Fixed costs =Net incomeSales - Variable costs - Fixed costs%3DNet incomeO None of the above

The correct option is fourth. As the formula of dividing variable cost by sales revenue is used for…

Which of the following would not be an acceptable way to express contribution margin? * 100% minus variable cost percentage Unit selling price minus unit variable costs Contribution margin per unit divided by unit selling price Variable costs divided by total sales revenue None of the above

Which of the following would not be an acceptable way to express contribution margin? * 100% minus variable cost percentage Unit selling price minus unit variable costs Contribution margin per unit divided by unit selling price Variable costs divided by total sales revenue None of the above

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 5SEQ

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Question

Which of the following would not be an
acceptable way to express contribution
margin? *
O 100% minus variable cost percentage
Unit selling price minus unit variable
costs
Contribution margin per unit divided
by unit selling price
Variable costs divided by total sales
revenue
None of the above

The equation which reflects a CVP
income statement is *
Sales = Cost of goods sold +
Operating expenses + Net income
Sales + Fixed costs = Variable costs +
Net income
Sales - Variable costs + Fixed costs =
Net income
Sales - Variable costs - Fixed costs
%3D
Net income
O None of the above

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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
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Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the contribution margin of a composite unit can be calculated by multiplying fixed costs by the contribution margin ratio of a composite unit can only be calculated when the proportion of products sold is the same for all products can be calculated by multiplying fixed costs by the contribution margin ratio of the most common product in the sales mix
The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves a. margin of safety. b. unit contribution margin. c. degree of operating leverage. d. sensitivity analysis. e. variable cost reduction.
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
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The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
Determine the missing amounts in the following table: unit sales price unit varible costs unit contribution margin contribution margin ratio (%) $22 10 10 24 50 25
Which of the following methods is used to determine the sales volume necessary to achieve a target profit? None of the above Contribution margin ratio method Unit sales method Absorption costing method
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.
Which of the following is contribution margin? Group of answer choices Excess of sales revenue over total variable costs. Excess of sales revenue over costs of goods sold. Excess of sales revenue over variable costs of goods sold. All of the answer choices are correct.
What can the weighted average contribution margin ratio be used for? To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.