FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What percentage markup on the selling price is equal to a 35% cost markup? Show solution.
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- 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 equationarrow_forwardDefine the term break-even point. What is the variable cost ratio? The contribution margin ratio? How are the two ratios related? Define the term sales mix. Give an example to support your definition.arrow_forwardIf, Total Fixed cost OMR 32000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the Margin of safety and profit if actual sales are OMR 85000? Select one: O a. Margin of Safety OMR 10000, Profit OMR 4000 O b. Margin of Safety OMR 26667, Profit OMR 16000 O c. None of the options O d. Margin of Safety OMR 5000, Profit OMR 2000arrow_forward
- Ay 3. Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?arrow_forwardIf selling price is $2.08 and cost is $1.60, what is the price/cost ratio?arrow_forwardDetermine the I target cost for model J 20, assuming that the historical markup on product cost and selling price are maintainedarrow_forward
- If, Total Fixed cost OMR 32000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the Margin of safety and profit if actual sales are OMR 85000? Select one: O a. None of the options O b. Margin of Safety OMR 5000, Profit OMR 2000 c. Margin of Safety OMR 10000, Profit OMR 4000 O d. Margin of Safety OMR 26667, Profit OMR 16000arrow_forwardOn the break-even chart you can see the three variants of the break-even points. Name the items marked with numbers in the figure. Choose the correct answers. 7 10 6 Choose... Choose... 7 Choose... 1 Choose... 9. Choose... v Choose... Total cost function (linear) Turning point of profitability Target profit (expected profit) Turning point of economic efficiency Volume Amortisation Total cost - amortisation Total revenue function Turning point of liquidity Total cost + Target profitarrow_forwardDefine each of the following terms.d. Stepped-up pricearrow_forward
- If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration Pricingarrow_forwardOn the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a. Contribution margin ratio O b Selling price per unit minus the variable.costs per unit Oc Variable costs per unit Od. Difference between contribution margin and fixed costs O e. Selling price per unitarrow_forwardThe contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost per unit ratio O b. Selling price per unit the variable cost per unit O c. None of the given answers O d. The selling price per unit/variable cost per unit e. (total sales/total sales) – variable cost ratioarrow_forward
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