FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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16. If sales are P500,000, variable costs are P200,000, and fixed costs are P240,000, what is the contribution margin ratio?
48%
52%
40%
60%
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- 12. A company has produced the following information for a product it is about to launch: Units Variable production cost per unit Fixed production costs Variable selling cost per unit Fixed selling price Administrative costs What is the life-cycle cost per unit? A. £4.81 B. £4.32 C. £5.07 D. £5.48 4000 £4.30 £5,000 A. Prime cost +60% B. Marginal cost+40% C. Average Total Costs +10% D. Net margin of 20% on selling price. £0.70 £1700 £900 7000 £3.80 £5,500 £0.60 £1800 £900 9000 £3.20 £6,000 £0.60 £1800 £900 13. A product has a prime cost of £15, variable overhead of £5 per unit and fixed overheads of £8 per unit. Which pricing policy gives the highest price?arrow_forward5. Herman Corp. has two products, A and B, with the following total sales and total variable costs: Product A Product B P10,000 P30,000 Total Sales P 4,000 P24,000 Total Variable Costs What is the overall contribution margin ratio? 30% 50% 40% 70%arrow_forwardSohar Company has a product with a selling price per unit of OMR 200, the unit variable cost is OMR 110, and the total monthly fixed costs are OMR 300,000. How much is Sohar's contribution margin ratio? Select one: O a. None of the answers are correct Оь. 45% O c. 55% O d. 150% О . 182%arrow_forward
- If sales are $817,000, variable costs are 79% of sales, and operating income is $240,000, what is the contribution margin ratio? 21% 79% 25% 75%arrow_forward15. For waterway industries, sales revenue is…arrow_forwardQ3. If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the contribution margin ratio? Answer: ______________________________________________________________________ Explain your answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________arrow_forward
- 3arrow_forwardThe contribution margin ratio is 60%. If total fixed costs are $22,000, then what is the total cost (5) of producing and selling 60,500 units? The selling price is $4 per unit 145,200 a O 123,200b O 220,000cO 96,800 dO None of the given answers.e Oarrow_forwardSheffield has a contribution margin of $378000 and a contribution margin ratio of 30%. How much are total variable costs? $113400 $264600 $882000 $1260000arrow_forward
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