Answered: The amount of a unit’s sales price that…

The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A. contribution marginB. profitC. variable costD. stepped cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: Following GAAP, the income statement issued to in OA. be prepared in the contribution margin forma…

A: The three most important financial statements are enumerated as below:Income Statement Balance…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs. The fixed cost…

Q: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit…

A: Fixed Cost In a simple term fixed cost which describe as cost which was incurred in the entity which…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: As compared to a traditional income statement format, which of the following terms do not appear on…

A: Where in the traditional income statement, Expenses are categorized in two different categories…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of 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: Marginal Costing

A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…

Q: Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint…

A: Hi studentSince there are multiple questions, we will answer only first question.Variable costs are…

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: Which of the following does not represent a cost-volume-profit analysis equation? a. Contribution…

A: Your choice is incorrect because option b. Is represent a cost volume profit analysis equation. The…

Q: What are the formulas for: 1. Contribution Cost 2. Break even cost

A: Cost refers to the expense that is incurred for making the goods or providing services by the…

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

A: First we understand contribution margin Contribution margin means Variable cost deduct from Sales…

Q: Gross margin is to absorption costing as which of the following is too variable costing? A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: How is the break-even point calculated? a. Fixed Costs / Contribution Margin Ratio b. Sales /…

A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

Q: The contribution margin ratio equals: Multiple Choice O Sales contribution margin. Sales variable…

A: The contribution margin takes into consideration variable expenses only.Contribution margin is the…

Q: costs that change proportionately according to the changes in the cost driver.......

A: variable costs are the costs that change according to the changes in the cost drivers or changes…

Q: True/False 1. Under absorption costing, the company calculates gross margin

A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

Q: Contribution margin is the difference between total revenue and total variable costs. Select one: O…

A: The contribution margin is calculated by subtracting total variable costs from total revenue. The…

Q: Contribution margin per unit contributes to covering ____cost and then generating. variable, profit…

A: The contribution margin is calculated as difference between sales and variable costs. The net…

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Contribution margin divided by Income is the: Muftiple Chalce 11 Contribution margin ratio. Margin…

A: contribution margin is calculated by = contribution /sales. This ratio help the companies to…

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: Unit cost is the same as average cost of a product or service O A. True B. False

A: Unit cost is the cost of making or selling one unit. It includes direct material cost per unit,…

Q: Which one of the following is an example for variable cost? O a. Salary with commission O b.…

A: Variable cost is a cost that keeps on changing with the changes in the level of activity.

Q: Malmo, Inc. manufactures travel locks. The budgeted selling price is $12 per lock, the variable cost…

A: Flexible budget means expected income and expenditure in future to find out budgeted income.…

Q: Given below in two contributions which option is good and why? Profit=unit sold × unit contribution…

A: Break-even point is the number of sales units that is sufficient to cover all the fixed and variable…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.

A: In order to cover the fixed expenses

Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…

A: The indirect costs include the factory overhead costs incurred into the production process. The…

Q: Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed…

A: First of all: Sales less Cost of goods sold will give us the gross profit earned from sales. Sales…

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: All variable costs are listed ________ on a contribution margin income statement. Question 35…

A: This question deals with contribution margin statement. Contribution margin statement is a statement…

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.

Question

The amount of a unit’s sales price that helps to cover fixed expenses is its ________.
A. contribution margin
B. profit
C. variable cost
D. stepped cost

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level above the break-even point. FALSE O TRUE
Contribution margin dividedt by Income is the: Multiple Choice Contribution margin ratio. Margin of safety. Degree of operating leverage. Sales mix. Break-even point in units.
The break-even point is that level of activity where: Select one: O a. sales revenue eguals fixed cost. O b. variable cost equals fixed cost. Oc total contribution margin equals the sum of variable cost plus fixed cost. O d. sales revenue equals total variable.cost Oe. contribution margin equals fixed cost.
How do you calculate Break-even Point? Select one: O a. Fixed cost/ Contribution per unit b. Contribution per unit/ Fixed cost c. Fixed cost/ Sales price per unit d. Fixed cost/ Variable cost per unit
26..
Subject:- Accounting
All of the following represents a cost-volume-profit relationship except: a. Total contribution margin + variable xpenses = variable expenses + fixed expenses profit b. Sales = totalexpe expenses + profit O cSales - variable senses + profit = fied expenses O d. Profit = totalcontri contribution margin- fixed expenses O e Sales - Variable expenses = fixed expenses + profit
A cost that has characteristics of both a variable cost and a fixed cost is called a Oa. variable/fixed cost Ob. sunk cost Oc. discretionary cost Od, mixed cost
What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs C. Mixed costs D. Semi-fixed costs
When the total contribution margin is greater than total fixed costs, a company has Select one: a. Higher variable cost and fixed cost. b. A net loss c. Zero profit. d. Net income.
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.