On the cost- volume -profit graph , the area between the total cost line and the sales line before the break -even point represents a. The profit area b. The variable cost amount c . The contribution margin per unit d. The fixed cost amount d. The loss area

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: Contribution margin per unit is the amount by which a products unit selling price exceeds its…

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

Q: a) Classify each cost as either variable or fixed with respect to the number of units produced and…

A: Variable costs are those costs which varies with output. It must be noted here that variable cost…

Q: The margin of safety is equal to:

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

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

A: on the cost volume profit graph, the area between the total costline and the sales line before the…

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

A: The contribution margin is described as that amount which is computed after reducing variable costs…

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

A: Cost profit volume analysis relationship shows how the profit of a entity changes due to change in…

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: Which of the following best describes a fixed cost? a. Cost representing a fixed proportion of…

A: Fixed Cost: It is a cost that does not change with the change in the level of output. It is the…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

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 formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at a. the origin. b. the…

A: Definition:   Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Q: The dollar amount of sales needed to achieve a target operating income is computed by…

A: The contribution margin is calculated as excess of sales revenue over variable expenses.

Q: 2)The contribution-margin ratio is: A) fixed cost per unit divided by variable cost per unit. B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

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

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

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: Contribution margin is equal to [A] fixed cost - loss [B] profit + variable cost [C] sales - fixed…

A:

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

A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…

Q: Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed…

A: Contribution margin means sales revenue which is earned over variable costs of the business.…

Q: The ratio of contribution margin in dollars to the selling price is the: Select one: Oprofit margin.…

A: We know that,  Contribution is sales - variable cost

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

A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…

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

A: This is part of break-even analysis.

Q: The term 'break even' point is defined as when: A. fixed costs equal total revenues B. variable…

A: The formula for calculating the break even point in units: Break Even Point (in Units)=Fixed…

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: Cost-Volume-Profit graph contains an "Area of Loss" and an "Area of Profitability". Which of the…

A: Meaning of Cost Volume-profit graph Cost Volume profit graph is also shortly called as CVP graph. It…

Q: Answer the following: 1.  The slope of line A is equal to the:  a. fixed cost per unit. b. selling…

A: Using fixed cost , total cost and sales revenue, the CVP chart graphically represents the…

Q: The contribution-margin ratio is:  Select one: a. unit contribution margin divided by the selling…

A: The contribution margin ratio is the % of the sales revenue which is remaining after substracting…

Q: In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense…

A: The intersection of total sales line and total expense line means, Total sales = Total expense

Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Which of the following describes the behavior of the variable cost per unit?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

Q: The high-low method: a. Calculates variable costs per unit by dividing the difference in the high…

A: The high-low method is a method to separate or segregate the fixed and variable cost portions of a…

Q: In cost-volume-profit analysis, what is the estimated profit at the break-even point?

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…

A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…

Q: :On the cost-volume-profit graph, the intersection between the total cost line and (Y) axis…

A: The correct answer is  The fixed cost amount. b

Q: Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed…

A: Hi student  Since there are multiple questions, we will answer only first question.

Q: The formula for Contribution is Select one: a. Fixed cost + loss b. Sales - Variable cost c. Fixed…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as net…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.