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If a company makes two products , R1 and R2, what is the fomula for the weighted-average unit contribution margin?

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

Problem 10E

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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.

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If a company makes two products , R1 and R2, what is the fomula for the weighted-average unit contribution margin?

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Which one of the following is defined, at any given sales volume, as the ratio of the total contribution margin to operating profit at that sales volume?
What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratio
What is the company’s contribution margin (CM) ratio?
Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? a. costs and expenses ratio b. contribution margin ratio c. margin of safety ratio d. profit ratio
To find the weighted average contribution margin, a company adds up the individual unit contribution margins of the different products and then divides by the total number of different products True or false
What does the term sales mix mean? How is a weighted-average unit contribution margin computed?
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
The amount of revenue required to earn a target profit is equal to Total fixed cost divided by contribution margin Total fixed cost divided by the contribution margin ratio Targeted profit divided by the contribution margin ratio Total fixed cost- plus targeted profit divided by contribution margin ratio Targeted profit divided by the variable cost ratio
On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-even point represents The fixed cost amount a O The contribution margin per unit b O .c O The variable cost amount .d O The loss area The profit area .e O
1. How much is the revenue to be earned throughout the product life cycle?2. How much is the cost to be incurred throughout the product life cycle?3. What is the profit margin for the product?
If a company increases its fixed costs for Product B, then the contribution margin per unit will a. increase. b. decrease. c. remain the same. d. More information needed.
Operating income can be calculated by: dividing fixed costs by the contribution margin ratio. multiplying fixed costs by the contribution margin ratio. multiplying the margin of safety by the contribution margin ratio. dividing the margin of safety by the contribution margin ratio.