Define and distinguish between contribution margin per unit and contribution margin percentage?

Q: Define and explain the contribution margin ratio.

A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…

Q: How do you calculate contribution margin?

A: The contribution margin can be calculated by deducting the variable cost from the sales revenue.

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: total contribution .margin

A: Total contribution margin = Total sales - Total variable cost

Q: contribution margin

A: Number of units sold Sales/Selling price $880000/$55 = 16000

Q: what is the benefit cost ratio?

A: net present value revenue = 1.5 cost revenue - cost = NPV 1.5cost -cost = 250000 cost = 500000…

Q: Define and explain the contribution margin.  Include the difference in fixed and variable costs in…

A: Contribution margin may be defined as the amount of profit generated when only the cost of goods…

Q: Contribution margin

A: When the entity has excess capacity the Revenue from Special Order need to cover the Variable cost…

Q: What is the contribution margin percentage?

A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: Contribution Margin per Unit & Contribution Margin Ratio

A: Under Scenario 1: Particulars Daycare Boarding Grooming Total Sales price (a) $18 $25 $25…

Q: What is the Contribution Margin?

A:

Q: Explain the usefulness of contribution margin and responsibility margin in making short-term…

A: Decision-making process: Decision making can be defined as the process of making choices through…

Q: a. Define and explain contribution margin on a per unit basis.

A: Contribution margin is the amount of sales revenue over and above it's variable costs in the…

Q: e contribution margin percentage?

A: Contribution Margin % = (( Sales Revenue - Variable cost )/(Sales revenue ) ) * 100

Q: Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution…

A: Contribution margin helps management to determine the amount of sales revenue left after considering…

Q: What is interpretation of the usefulness of the contribution margin concept?

A: Contribution margin The additional profit gained for each unit sold is calculated by subtracting the…

Q: What costs are assigned to a segment under the contribution approach?

A: Contribution approach is approach used to present income statement in which all the variable costs…

Q: What are the two components that can affect the contribution margin? Why is it important to…

A: The two components that can affect contribution margin: 1) Number of units sold. 2) Price / cost per…

Q: what is weighted average cost method?

A: The weighted average cost method is one of the methods to ascertain the unit cost of a product. It…

Q: what is the definition and significance of contribution margin ratio

A: Contribution margin ratio Contribution margin ratio is also profit-volume ratio. It helps us to…

Q: What are the usefulness of the gross margin method?

A:

Q: Define the term contribution margin ratio.

A: Contribution margin is the measure of ability of the company to cover its variable costs with the…

Q: Define and describe contribution margin per unit.

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: How is contribution margin calculated? What about contribution margin ratio? Aren’t they the same…

A: Subtracting the selling price per unit from the variable cost per unit yields the contribution…

Q: How is contribution margin calculated?

A: Contribution margin means sales revenue over and above the variable costs of production and selling…

Q: What is the weighted average contribution margin percentage?

A: Contribution margin ratio of the business shows ratio of contribution margin with sales revenue of…

Q: What is the difference between total costs and marginal costs?

A: Total cost is the total economic cost of production. Variable cost changes according to the quantity…

Q: What does the Unit contribution margin express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: contribution margin percentage

A: Contribution margin percentage = (Selling price per unit - Variable cost per unit)*100/Selling price…

Q: Write the equation for the Contribution margin?

A: Cost volume profit analysis: CVP analysis established the relation between cost, volume, and profit…

Q: What does the Contribution margin equation express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: What is the relationship among fixed costs, contribution margin, and thebreak-even point?

A: Fixed costs: These are the costs incurred by the organization irrespective of the volume of…

Q: Define the following terms: incremental cost, opportunity cost, and sunk cost.

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: cost benefit model

A: The benefit under the cost-benefit model is calculated by deducting the associated cost from the…

Q: What is the equation to find Contribution Margin?

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: Explain an example how to calculate contribution margin ratio.

A: Contribution margin ratio:   Contribution margin ratio is the difference between the company’s sales…

Q: Define the term an incremental benefit-cost ratio?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: How is conversion costs per equivalent unit calculated?

A: The cost per unit is calculated as total cost divided by number of units.

Q: How do you calculate Benefit Cost Ratio (BCR). Mention the decision making process of BCR

A: The present value of the benefit is divided by the cost and investment in order to calculate the…

Q: Express the two ways of contribution margin?

A: Contribution margin is the difference between the sales revenue and the variable costs.

Q: calculate contribution margin ratio, breakeven point in amount and breakeven point in units

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: Explain income statement under contribution margin format.

A: Contribution margin: It refers to the difference between the selling price per unit of a product and…

Q: Define contribution margin, contribution margin per unit, and contribution margin percentage.

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: Explain contribution margin.

A: Contribution Margin is the amount of revenue available after variable costs to cover fixed expenses…

Q: What is a target cost per unit?

A: The target cost per unit refers to the cost that is to be estimated that the customers are willing…