Answered: Contribution margin per unit is the…

Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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PV ratio is the function of sales and variable costtherefore it can be achieved by
On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the: a. margin of safety point b. total cost point c. breakeven point d. unit contribution margin
Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.
The ratio of contribution margin in dollars to the selling price is the: Select one: O profit margin. O break-even point in unit sales. O contribution margin ratio. O net income
Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed expenses.
QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They are constant per unit of output O b. They vary per unit of output as production volume changes O . They are constant in total when production volume changes O d. They vary in total, from period to period when production is constant
2..
7. Which of the following is a correct formula to calculate contribution margin ratio (CM ratio)? a. Contribution margin/Sales b. Contribution margin/Variable cost c. Contribution margin/Fixed cost d. Sales/Contribution margin
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 variable cost ratio is calculated as contribution margin ratio - (the selling price per unit/the selling price per unit) a O Selling price per unit - the variable cost per unit b O The selling price per unit/variable cost per unit .c O None of the given answers dO The selling price per unit ratio/variable cost per unit ratio .e O
The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equation
The break-even point in dollars is computed by dividing fixed costs by contribution margin ratio. fixed costs by contribution margin per unit. variable costs by contribution margin ratio. O variable costs by contribution margin per unit.