To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs plus desired prof it is divided by contribution margin weighted average unit contribution margin contribution margin ratio unit sales price minus unit contribution margin

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: The selling price per unit less the variable cost per unit is the:   A) fixed cost per unit  B)…

A: The selling price per unit less the variable cost per unit is the contribution margin per unit. This…

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: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…

A: Margin Of Safety is the difference between Break Even Sales and Actual Sales

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: 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: Determine the missing amounts in the following table: unit sales price unit varible costs unit…

A: Contribution margin refers to relationship between Sales and Fixed cost plus Profit.

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

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: 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: 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: How would the equation for total costs be written using the following? y = total costs v =…

A: Variable costs are costs that change with change in volume of production . Whereas, Fixed costs…

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: Contribution margin is selling price plus unit cost. True or false

A: Contribution Margin is the income before deduction of any fixed cost. Contribution margin = Selling…

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: 1. Distinguish between variable and fixed costs both on a per unit and total basis (graphs may be…

A: Distinguish between variable and fixed costs both on a per unit and total basis Variable costs are…

Q: a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the…

A: The difference between the sales revenue and the variable costs is called the contribution. It is…

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: Identify the formula that computes the degree of operating leverage (DOL).

A: The degree of operating leverage (DOL) measures how much the operating income of a company will…

Q: An estimated cost per unit in long run which enables the company to achieve its per unit desired…

A: Solution: An estimated cost per unit in long run which enables the company to achieve its per unit…

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 one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: The difference between sales price per unit and variable cost per unit is the:   Multiple Choice…

A: The objective of the question is to identify the term that represents the difference between the…

Q: Please define and give formula of the following (if there is any): 1. Absorption costing 2. Activity…

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

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: PV ratio is the function of sales and variable costtherefore it can be achieved by

A: The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

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: 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: Contribution margin is sales less Star

A: Variable cost can be defined as the cost which is incurred on the production of goods. The value of…

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: All of the following represents a cost -volume -profit relationship except : a. Profit = totalcon…

A: CVP analysis is the analysis which is more helpful in determining the effects of variation in the…

Q: Based on below, Activity-Based Costing and Analysis Cost Behavior and Cost-Volume-Profit Analysis…

A: Under cost-profit volume analysis, the break-even point is that level of production where the…

Q: When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in…

A: The objective of the question is to identify what cost component is estimated using the formula…

Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: The break-even point in dollars is computed by dividing fixed costs by contribution margin ratio.…

A: Contribution margin ratio represents the portion of each sales dollar available to cover fixed costs…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any…

A: A cost-volume-profit graph illustrates how changes in sales volume affect a company's profit by…

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.