Contribution margin is a. another term for volume in the "cost-volume-profit" analysis b. the same as sales revenue c. the excess of sales revenue over variable cost d. profit
Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…
A: Formula: Contribution margin per unit = Selling price per unit – Variable cost per unit.…
Q: Contribution margin is
A: Contribution margin is an important term used in cost-volume-profit analysis. It is the excess of…
Q: The margin of safety is equal to:
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: :All of the following represents a cost-volume-profit relationship except Total contribution margin…
A: Cost-volume-profit relationship : The Cost Volume-Profit relationship is the study of relationship…
Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…
A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…
A: on the cost volume profit graph, the area between the total costline and the sales line before the…
Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…
A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…
Q: Nos. 4 and 5 are based on the following: ‚Y Pesos Activity level 4. At point A compared to point B,…
A: Variable costs are the cost which changes as per the change in the volume of the sales. Fixed costs…
Q: CVP analysis
A: Option "b" is wrong because the statement is true. The purpose of CVP analysis is to study the…
Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…
A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…
Q: The unit contribution margin is calculated as the difference between: a. selling price and fixed…
A: 1) Option B is correct i.e. selling price and variable cost per unit. Reason :- Unit contribution…
Q: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…
A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…
Q: A favorable cost variance occurs when a. actual costs are the same as standard costs b. actual costs…
A: solution note Dear student as per the Q&A guideline we are required to answer the first question…
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: he mathematical equation for computing required sales to obtain target net income is: Required Sales…
A: Introduction:- One of the most uses of CVP analysis is the determination of the sales required to…
Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…
A: A graphical representation of the relationship between production costs and total sales is shown by…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…
Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…
A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…
Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: The ratio of contribution margin in dollars to the selling price is the: Select one: Oprofit margin.…
A: We know that, Contribution is sales - variable cost
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…
A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…
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: 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: In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even.…
A: Cost-volume-profit analysis is used inorder to analyse the relation between profits of the entity…
Q: A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed…
A: Break Even point is a level where Profit is Zero
Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…
A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…
Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…
A: Margin of safety ratio = Profit ratio / Contribution margin ratio
Q: the following best explains the difference between the two points on the graph? * Q O The area of…
A: The cost volume profit analysis is performed to represent the effect of different cost on Income and…
Q: Cost-Volume-Profit graph contains an "Area of Loss" and an "Area of Profitability". Which of the…
A: Meaning of Cost Volume-profit graph Cost Volume profit graph is also shortly called as CVP graph. It…
Q: The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not…
A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…
Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…
A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…
Q: Which of the following is true of the contribution margin ratio? a.If the contribution margin…
A: The contribution margin indicates the excess of revenue over its variable cost. It also indicates…
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: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…
A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…
Q: The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per…
A: Contribution margin is the sales revenue over and above its variable costs. Contribution margin =…
Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
Q: The variable cost ratio represents The proportion of variable costs in relation to net income The…
A: Solution : The variable cost ratio represents Correct answer is Option 3 . The proportion of…
Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…
A: CVP analysis estimates the how much the changes in a company's cost, both fixed and variable, sales…
Q: All else being equal , what happens to the unit contribution margin and the contribution margin…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Nos. 4 and 5 are based on the following : ,Y Pesos Activity level 4. At point A compared to point B,…
A: 4. Variable costs are the costs that vary with the change in the output of the company. Whereas,…
Q: The break-even point in CVP analysis is defined as the point 1) where output units equal input…
A: A Break-even point is a level of sales at which there is no profit or loss. Hence, at the break-even…
Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…
A: Contribution Margin per unit refers to the excess value over the variable expenses per unit when…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Option b is correct.
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- Particulars 2 units 4 units 8 units Direct Material @ $88000 per unit $176000 $352000 $704000 Direct Manufacturing labor @ $25 per labor hour $131750 = (5270 × $25) $224000 = (8960 × $25) $380800 = (15232 × $25) Variable Manufacturing Overheads Cost @ $15 per labor hour $79050 = (5270 × $15) $134400 = (8960 × $15) $228,480 = (15232 × $15) Total Variable Cost of Production $315655 $710400 $1313280Product Information A B $335.00 5820 52% Unit Sales Price $470.00 3841e 48% Units Manufactured and Solde Sales Mix (% of total units sold)a Vary with Unit Costs A Be $264.534e $58.804e $19.51e $342.84e Direct Material $162.614 Direct Labore $44.804 $15.43 $377.364 Other Vary-with-Unit Costse Total Vary with Unit Costse Fixed Costs $183,868.20 Vary-with-Revenue Costs Sales Commissionse 3.5% calculate the break even point in dollars for each producte calculate the Break-Even Variable Costs for the two products.e calculate the Break-Even Contribution Margin (this is the contribution margin for the total number of units reauired to break even.)' calculate the Break-Even Profit Before Tax. (Break even profit would normally be 0, but because we rounded up our break-even units, this should be slightly more than 0.)e0 0 Cost Graph One Total Units Produced Cost Graph Three Total Units Produced 0 Cost Graph Two Total Units Produced Cost Graph Four e. Per-unit direct labor cost Total Units Produced For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: a. Total direct materials cost b. Electricity costs of $1,000 per month plus $0.10 per kilowatt-hour c. Per-unit cost of straight-line depreciation on factory equipment d. Salary of quality control supervisor, $20,000 per month Ⓒ
- es Product A Unit Contribution Margin S Product B Unit Contribution Margin 10.00 $ 3.00 16.15 46.40 7.00 6.00 12.30 57.10 Product Mix 50/50 90/10 60/40 75/25 Weighted- Average Contribution MarginA 1 Original Data: 2 3 4 5 6 7 8 9 10 11 12 Part 1 13 14 15 16 Estimated MOH Estimated DLHS 28 29 B Selling price per unit Direct materials per unit Direct labour per unit Direct labour-hours per unit Estimated annual productio POR: 17 18 Sales 19 Less product costs 20 21 22 23 Total product costs 24 Product margin Direct materials Direct labour Manufacturing overhead 25 Units produced and sold: 26 Product margin per unit 27 $1,350,000 112,500 High Grade $212.50 $83.50 $30.00 1.00 75,000 High Grade D Professional $387.00 $212.00 $45.00 1.50 25,000 per DLHs Professional TotalA 1 Chapter 7: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 7 8 Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead 9 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending inventory 29 30 Compute the Absorption Costing Unit Product Cost 31 32 Direct materials 33 Direct labor 34 Variable manufacturing overhead 35 Fixed manufacturing overhead 36 Absorption costing unit product cost 37 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing 22 23 Compute the Ending Inventory 24 46 Compute the Variable Costing Unit Product Cost 47 48 Direct materials 49 Direct labor…
- A1 fx Chapter 6: Ap B D E Chapter 6: Applying Excel 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: Direct materials $50 7 $11 8 Direct labor $6 $3 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 9 $120.000 $4 S70,000 14 15 Year 1 Year 2 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 10,000 6.000 8,000 6,000 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing 22 23 Compute the Ending inventory 24 Year 1 Year 2 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending inventory 2,000 6,000 6,000 10,000 8.000 2,000 2,000 29 30 Compute the Absorption Costing Unit Product Cost Year 1 $11 31 Year 2 $11 32 Direct materials 33 Direct labor 34 Variable manufacturing…Question 9 Company 9 makes three products, P, Q and R. Unit costs and revenues relating to these three products are as follows: P R £ 1,500 £ 2,500 | 3,300 Selling price Direct materials Direct labour Variable overheads 450 650 1,160 250 150 650 50 30 130 Fixed overheads 300 200 400 1,230 2,140 1,270| 1,160 Total costs 1,050 Profit per unit 450 All three products use labour which costs £50 an hour but suitable labour is in such short supply that the company cannot fulfil the demand for these three products in their entirety. In what order should these three products be produced if the company wishes to maximise its profit? Best 2nd best 3rd best A P Q R B R Q C Q R P Q RQuestion 8 Cranston Corporation makes four products in a single facility. Data concerning these products appear below: Products A C D B $42.30 Selling price per unit $50.00 $37.60 $ 33.50 $30.70 $ 21.00 $ 19.90 Variable manufacturing cost per unit $ 20.80 Variable selling cost per unit $2.10 $1.00 $2.40 $2.70 3.30 Milling machine minutes per unit 4.10 2.60 1.30 Monthly demand in units 1,000 4,000 3,000 3,000 The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines. How many minutes of milling machine time would be required to satisfy demand for all four products? 23,500 28,200 O 11,000 O 31,400
- Selling Price/Unit Units Produced Units Sold Fixed Manufacturing Direct Materials/Unit Direct Labor/Unit Variable OH/Unit Var S,G,A/Unit Fixed S,G, & A $100 200 150 $1500 $3 $4 $10 $30 $2000 Year 1 Absorption Costing Variable (Direct) Costing Account Calculation Total Amount Account Calculation Total amount Sales Revenue Sales Revenue COGS Variable Expenses Gross Margin Contribution Margin S, G, & A Fixed Expenses Operating Income Operating Income 1. The unit product cost under Absorption Costing is: 2. The unit product cost under Variable Costing is: 3. The Cost of Goods Sold under Absorption Cost is: 4. Total Variable Expenses are: 5. Gross Margin 6. Total Contribution Margin is : 7. Operating Income under Absorption Costing is: 8. Operating Income…Arntson, Incorporated, manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 800 units and of Product NO is 500 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product R3 Product NO Total direct labor-hours Activity Cost Pools Labor-related Production orders. Order size Direct Labor- Expected Hours Per Production 800 500 The direct labor rate is $20.80 per DLH. The direct materials cost per unit is $276.00 for Product R3 and $280.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Activity Measures DLHS orders MHS Unit 4.0 2.0 Total Direct Labor- Hours 3,200 1,000 4, 200 $ 40,836 64, 650 433, 275 $ 538,761 Expected Activity Product R3 Product No 1,000 3,200 900 500 2,500 3,100…Answer 1234 with solution Alexi Division of Dezi Company makes and sells only one product. Annual data on Alexi division’s single products follows: Unit selling price ............................. P50 Unit variable cost ............................. 30 Total fixed costs .............................P200,000 Average operating assets ............... 750,000 Minimum required rate of return ........ 12% If Alexi sells 15,000 units per year, how much is the residual income? If Alexi sells 16,000 units per year, what is the return on investment? Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell? Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell?