10. The income statement for Jeeves Ltd for 2015 is shown below: Sales (100 000 units) $40 000 Variable cost $24 000 Contribution margin $16 000 Fixed costs $12 000 Net Income 5 4000 What is the contribution margin ratio? A 10% В. 30% C. 40% D. 60% 11. What is the difference between total sales in dollars and total variable expenses called ANet operating income B. Net profit C. The gross margin D. The contribution margin 12. How is the margin of safety computed? A Break-even'total sales R Total sulri. Brakuom alm

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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10. The income statement for Jeeves Ltd for 2015 is shown below:
Sales (100 000 units)
$40 000
Variable cost
$24 000
Contribution margin
$16 000
Fixed costs
$12 000
Net Income
$ 4000
What is the contribution margin ratio?
A. 10%
В. 30%
C. 40%
D. 60%
11. What is the difference between total sales in dollars and total variable expenses called?
A Net operating income
B. Net profit
C. The gross margin
D. The contribution margin
12. How is the margin of safety computed?
A Break-even'total sales
B. Total sales - Break-even sales
Transcribed Image Text:10. The income statement for Jeeves Ltd for 2015 is shown below: Sales (100 000 units) $40 000 Variable cost $24 000 Contribution margin $16 000 Fixed costs $12 000 Net Income $ 4000 What is the contribution margin ratio? A. 10% В. 30% C. 40% D. 60% 11. What is the difference between total sales in dollars and total variable expenses called? A Net operating income B. Net profit C. The gross margin D. The contribution margin 12. How is the margin of safety computed? A Break-even'total sales B. Total sales - Break-even sales
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