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Which of the following statements is correct?
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When cost of goods sold as a percentage of sales increases, the gross profit margin will increase. |
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If the gross profit margin increases from one year to the next, then the net profit margin will also increase from one year to the next. |
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If the gross profit margin is the same for the current and past year, then sales and cost of goods sold in dollars did not change. |
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It is possible that when cost of goods sold in dollars increases, cost of goods sold as a percentage of sales decreases. |
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- May I ask for a solution and explanation to the problem for a better understanding. Thank you! If the sales this year amounted to P276,000, sales this year at last year’s price is P230,000, the cost of sales this year is P190,000, and the cost of sales this year at last year’s price is P180,000. How much is the gross profit variation due to sales quantity factor? a. P0 b. P40,000 U c. P40,000 F d. P240,000 F e. can't be determinedMay I ask for an explanation and solution to the question for a better understanding. Thank you! 1.If the sales this year amounted to P500,000, sales this year at last year’s prices is P460,000. The cost of sales this year is P300,000, and the cost of sales this year at last year’s price is P260,000. How much is the gross profit variation due to sales price factor? a. P0 b. P400,000 U c. P40,000 F d. P240,000 F e. can't be determinedMay I ask for an explanation and solution to the question for a better understanding. Thank you! 2. If the sales this year amounted to P276,000, sales this year at last year’s price is P230,000, the cost of sales this year is P190,000, and the cost of sales this year at last year’s price is P180,000. How much is the gross profit variation due to sales quantity factor? a. P0 b. P40,000 U c. P40,000 F d. P240,000 F e. can't be determined
- Let P(x) be the annual profit for a certain product, where x is the amount of money spent on advertising. (a) Interpret P(0) (b) Describe how the marginal profit changes as the amount of money spent on advertising increases. (c) Explain the economic significance of the inflection point.For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a. In a period of falling prices, net income would be highest. b. In a period of falling prices, the unit cost of goods would be the same for ending inventory and cost of goods sold. c. In a period of rising prices, net income would be highest. d. In a period of rising prices, cost of goods sold would be highest. e. In a period of rising prices, ending inventory would be highest.The problem is stated in the picture. Here is the question: 1. How much is the gross profit for the year?
- Use the information provided below to answer the following questions: 3.1 Calculate the total Marginal Income and Net Profit (Loss). 3.2 Determine the break-even value using the marginal income ratio. 3.3 Use your answer from question 3.2 to calculate the break-even quantity. 3.4 Calculate the margin of safety (in units). 3.5 How many units must be sold to achieve a net profit of R756 000? 3.6 A decrease in the selling price of R10 per unit and a decrease in the fixed costs of R21 600 are expected to increase sales by 300 units. Will profitability improve? Motivate your answer. INFORMATION Temp Ltd manufactures toasters. The following information was extracted from the budget for the year ended 31 December 2022: Sales 5 400 units Selling price per toaster R270 Direct material cost per unit R70 Direct labour cost per unit R40 Variable manufacturing overheads cost per unit R16 Fixed manufacturing overheads cost R288 000 Variable selling and administrative costs per unit R36 Fixed selling…Which of the following is true when sales units remain constant each month but production units fluctuate?a) Profit reported each month will always fluctuate in proportion to units producedb) Absorption cost inventory valuation will lead to a higher profit being reported than that where marginal cost inventory valuation is used where sales exceed productionc) Marginal cost inventory valuation will give a higher profit than absorption cost inventory valuation where sales exceed productiond) Marginal cost inventory valuation will result in the same profit being reported each monthWhich of the following is true regarding the contribution margin ratio of a single product company? As fixed expenses decrease, the contribution margin ratio increases. The contribution margin ratio multiplied by the variable expense per unit equals the contribution margin per unit. The contribution margin ratio increases as the number of units sold increases. If sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales.
- b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and percentage - in cost of goods sold. The cost of goods sold increased at a * rate than the increase in sales, thus causing the percentage increase in gross profit to be * than the percentage increase in sales.(a) Calculate and determine the break-even points (in sales dollars and units) for each product type, assuming a constant sales mix. (b) Explain by showing relevant computations, how your answer to part (a) would change if the constant sales mix assumption is lifted.In this problem, p is the price per unit in dollars and q is the number of units. Suppose the weekly demand for a product is given by p + 2g = 840 and the weekly supply before taxation is given by p = 0.02g2 + 0.55g + 7.4. Find the tax per item that produces maximum tax revenue. (Round your answer to the nearest cent.) $ 483.17 Find the tax revenue. (Round your answer to the nearest whole dollar.) $ 40,089