Answered: A manager who wants to determine the…

A manager who wants to determine the percentage impact on income of a given percentage change in sales would multiply the percentage increase/decrease in sales revenue by the:

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

See similar textbooks

Related questions

Q: What is the formulae to find New sales level?

A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. or

Q: Listed below are eight terms: Residual income Balanced scorecard Return on investment Management…

A: Accounting Terminology: Accounting terminology defines all of the phrases that are used in the…

Q: Assume a company receives an actual return of goods. Which of the following needs to happen? Sales…

A: The return of goods is the amount of goods that were sold to customers but were returned to…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: Define return on sales ( or profit margin).

A: Financial ratios represent the accounting ratios computed by the management by using elements of…

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: The following information relates to Paterno Company: If a manager at Paterno desired to determine…

A: Degree of Operating Leverage = Contribution Margin / Net income

Q: What is Gross Margin? a) (Net Sales - Cost of Sales – Operating Expenses) / Net Sales b)…

A: Solution:- Introduction;- Gross margin is the difference between Net sales and cost of goods sold.…

Q: What would be the sales value or turnover corresponding to the threshold of profitability

A: Sales turnover: It is the company's total amount of services / products sold over a given period of…

Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…

A: Solution- (A) P(o) represents the amount of annual profit allocated when x=0 or when no money was…

Q: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of…

A: Contribution Margin = Sales Price - Variable Costs Variable Cost of Goods Sold as a Percent of Sales…

Q: Is the cost of sales under weighted average always greater than the cost of sales in FIFO?

A: as FIFO method of inventory valuation goods purchased first will be used first or sold first. The…

Q: On a traditional income statement, sales revenue less cost of goods sold equals Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: Relative to the above data, how much is the Cost of sales and Net income for the period

A: The cost of goods sold is the cost of purchases and manufacturing of the products which the company…

Q: Compute the following ratio analysis: Operating Profit Margin Net Profit Margin Write your…

A: Current Year: Net Sales = 120,000 Operating Income = 43,000 Net Income = 35,000 Prior Year: Net…

Q: Explain the calculation procedures for and significance of return on sales.

A: The return on sales (ROS) ratio is a statistic for evaluating a business's operational efficiency.…

Q: Explain profit margin on sales

A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…

Q: The increase (decrease) in gross profit due to change in overall quantity sold is:

A: As the student has asked specific question so we are answering that question only.

Q: Define days sales outstanding (DSO). What can be learned from it?How is it affected by sales…

A: The average number of days in which a firm receives payments after the sale is done is a calculation…

Q: Suppose sales volume increase by the same percentage for Company X and Company Y. Use CVP analysis…

A: Cost volume profit (CVP) analysis is the one which is helpful in analyzing the costs and profits of…

Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…

A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…

Q: Why does the sales value at splitoff method use the sales value of the total production in the…

A: Split-off Point: Split-off point is the point in production process where joint products are capable…

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: Steadily increasing cost of goods sold as a percentage of net revenues is an indication ofa.…

A: Answer: a. decreasing earnings quality.

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: Increasing earnings quality could be indicated bya. an improving operating earnings/sales ratio.b. a…

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: What are the three approaches to calculating the sales required to achieve the target profit? Give…

A: Target profit is referred to as the amount profit that the supervisors of a business hope to…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: The difference between total sales in dollars and total variable expenses is called: a. net profit…

A: Contribution Margin Contribution Margin is the amount of revenue remaining after variable costs to…

Q: Which of the following statements concerning performance evaluation tools used in decentralized…

A: Performance evaluation means when actual performance is being compared with the budgeted numbers and…

Q: Gross profit variance analysis can be used to study the effect of: a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: Change in operating income = change in sales dollars x contribution margin What is the equation for…

A: The Sales, Contribution Margin, Variable costs are the components of CVP Analysis. The analysis is…

Q: Define Return on sales

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Define Profit margin on sales.

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…

Q: Operating leverage measures the: Change in profit when sales changes. Change in Contibution when…

A: Solution: Operating leverage = Contribution margin / Net income Therefore Operating leverage…

Q: Below is a list of various metrics used to measure performance. For each metric, identify the…

A: Balanced scorecard: It is a tool to measure the performance that relates a company’s strategy to…

Q: Below is a list of various metrics used to measure performance. For each metric, identify the…

A: Balanced scorecard: It is a tool to measure the performance that relates a company’s strategy to…

Q: Match each of the following descriptions with the appropriate term. Clear All Plots only the…

A: Given, Match each of the following descriptions with the appropriate term.

Q: Calculate gross profit percentage and return on sales ratio

A: The formula to calculate the given ratios are:

Question

A manager who wants to determine the percentage impact on income of a given percentage change in
sales would multiply the percentage increase/decrease in sales revenue by the:

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

Direction: Answer the problem below and forecasts the income statement using percent of sales method. (Please refer to the picture)
Compute the following ratio analysis: Operating Profit Margin Net Profit Margin Write your interpretation after the computation.
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
Find (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup percentage on full cost for this product.
In computing the B/C ratio, is the annual revenue counted as benefits? Please compute the B/C ratio of MEA 5 and show your solution (not in excel). and explain
Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b. Breakeven point O c. Profit when margin of safety is given O d. For all options provided
A decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset turnover ratio. c. Current ratio.b. Times interest earned. d. Gross profit percentage.
the dollar amount of sales needed to achieve a target operating income is computed by what
Define return on sales ( or profit margin).
On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
Mark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c. Markup = Selling price + Cost d. Markup = Expenses + Profit
How do you find the gross profit as a percent of sales and income from operations as a percent of sales?