An increase (decrease) in cost of sales due to volume of *
Q: Which of the following is true regarding the contribution margin ratio of a single product company?…
A: 1. Contribution Margin Ratio - It is calculated by following formula - = (Total Revenue - Variable…
Q: When the sales price per unit decreases, the contribution margin per unit ________. A. increases…
A: Contribution means the difference between the selling price and variable cost . Selling price means…
Q: contribution margin will decrease if sales remain the same and:
A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…
Q: 1. Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost.…
A: Gross profit is calculated by reducing the cost of goods sold from sales revenue. Thus, sales price…
Q: Net Sales Revenue: Variable Cost of Goods Sold: Fixed Cost of Goods Sold: Variable Selling and…
A: Absorption costing considers all costs of manufacturing as product costs irrespective of the nature…
Q: If the fixed cost for a product decrease and the variable cost (as a percentage of 8. peso sales)…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?
A: The analysis for cost, volume and profit in an organization is called Cost-Volume-Profit analysis.…
Q: Once a company exceeds its breakeven level, operating income can be calculated by multiplying: The…
A: Break-even point:
Q: What is the effect of an increase in variable costs as a percentage of sales onthe contribution…
A: Variable cost refers to the cost which varies according to the volume of produced units. Increase in…
Q: ending inventory increases therefore net income under AC and VC will be same Select one: True False
A: The income statement can be prepared using various approaches as contribution margin or absorption…
Q: hat is the difference between mark up and margin? margin at 331/3 % of sales means?
A: Solution Concept Markup : mark up is the amount of profit which means the addition to cost , it is…
Q: Margin of Safety (MOS) in dollars indicates how much sales must decrease before the company will be…
A: Margin of safety is the excess of actual revenue over its break even revenue.
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Answer
Q: A decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset…
A: Answer:
Q: The contribution margin ratio always increases when the: a. Break-even point increases. b.…
A: Contribution Margin ratio = (Sales Revenue per Unit - Variable Expenses per Unit) / Sales Revenue…
Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing. Group of answer…
A: Introduction: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold…
Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…
A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…
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: Help question 28
A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…
Q: What is the contribution margin per unit? contribution margin ratio? Unit sales at break even…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…
A: To find: which of the following statement is true
Q: What is the gross profit declined due to increase in cost in the amount?
A: Gross profit refers to the profit calculated after considering the costs associated with the…
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 the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)
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: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: Break even point is total fixed cost divided by contribution margin per unit. So break-even point…
Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?
A: Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis. In LIFO , cost 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: On the breakeven graph, the fixed cost line a) moves to the right as fixed cost increase.…
A: SOLUTION- BREAK EVEN GRAPH- IT IS A GRAPH WHICH PLOT TOTAL SALES AND TOTAL COST CURVES OF A COMPANY…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
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: Steadily increasing cost of goods sold as a percentage of net revenues is an indication ofa.…
A: Answer: a. decreasing earnings quality.
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: If unit costs remain unchanged and sales volume and sales price per unit both increase from the…
A: Operating profit is the total income from operations before taxes. The revenue and the money spent…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point where unit sold gives no profit or loss to the firm. Beyond Break Even…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point at which firm incurred no loss and earned No Profit. Break Even Point…
Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…
A: Breakeven quantity increases with the following changes: Increase in amount of fixed costs,…
Q: If the percentage change in operating income resulting from a given percentagechange in sales is…
A: Operating Leverage is the % change in EBIT to the % change in sales. It shows how much the EBIT…
Q: Profit at any level of sales in units is measured as a. Sales (units) * Cost per unit + Fixed cost O…
A: Profit means the amount that is earned from sale of units. For calculating profits ,we need to…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: The Break-even point is the point where all the sales generated by the company are equal to the cost…
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: If the proportions of different products in a sales mix change, Contribution margin per unit…
A: Answer: 2. False change in sales mix directly impact the break -even point
Q: Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net…
A: Introduction:- Income statement shows company's income and expenses over a period of time.…
Q: At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed…
A: breakeven point = no profit and no loss situation for the company. the breakeven point is where the…
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- Analyze the influence of factors on the level of return on sales (ROS). Choose the proper method of factor analysis. Year 200A Year 200B Sales, $'000 56000 58421 Cost of goods sold, $'000 48000 50024Calculate total revenue and fill in the table below. Price Quantity Total Revenue S50 60 $40 06 $35 110 S30 140 $25 1902. The following data are given on the only one product of Glory Co. 2020 2021Sales volume 3,000. 2,600Unit Selling price. P 8.00. P 11.00Unit cost. 5.00 9.00 Prepare the gross profit statement and analyze the variation in gross profit
- b) Write Excel Formulas for given data sheet A B D E 1 Product Product Price per Sales tax(10% |Net Price No item of price) ? name 2 1 Mouse 5000 keyboard joyStick 3 1000 4 3 1500 4 VGA cable 800 6. Monitor 15000 Total price of all items 5% concession on total price 7 ? 8 ? 9. Total bill ? Dage 213Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000. e)Q7 b.Calculate the effect on profit of a proposed change in 'Sales Mix' from the following data and also suggest that whether company should change the sales mix or continue with the existing: M N Total Sales (in Rs) Existing Sales mix(Rs.) 80,000 1,00,000 40,000 20,000 2,40,000 Variable Cost (in Rs) 48,000 68,000 32,000 8,000 1,56,000 Fixed Cost (in Rs) 58,800 Proposed Sales Mix(Rs.)60,000 88,000 80,000 12,000 2,40,000
- Editing Voice Sensitvity Edtor 7. Suppose we have the following annual sales data for an automobile dealership: Year Sales Trend 2011 121 1 2012 187 2013 165 2014 134 2015 155 2016 167 6. 2017 200 7 2018 206 2019 221 2020 231 10 We want to forecast sales for 2021 and 2022 using either a simple trend model or a model using the RMSE measure discussed in lecture. Once this model has been determined, provide actual forecasts for 2021 and 2022. Report the two RMSE values in your submission along with the actual forecasts. Submit your Excel file used to create these answers. quadratic trend model. Use a within sample forecasting technique to determine the nonle become sickQUESTION 6 Use the information below to answer. If total sales are $18,800 what is the MD%? Style # QTY Orig Retail Sale Price 1000 120 $50.00 $29.99 1200 150 $38.00 $29.99 1300 144 $44.00 $29.99 1400 96 $54.00 $29.99The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 22000: Select one: Oa. OMR 62000 O b. OMR 44000 O c. OMR 72000 Od. OMR 64000
- A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/201939. The gross profit of Reade Company for each of the years ended December 31, 20PY and 20CY, are as follows: 20PY 20CY Sales P792,000 PB00,000 Cost of goods sold 464.000 480.000 Gross profit P328.000 2320 000 Assuming that selling prices were 10% lower during 200Y, what would be the amounl of decrease in gross profit due to the change in selling price? P 8,000 b. P72,000 P79,200 d. P88,000 a. C. (aicpа)Required information ($ thousands) Net sales Cost of goods sold Current Year $ 885,182 396,513 Current Year: Prior Year: Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) Prior Year $ 456,779 137,643 Numerator: Trend Percent for Net Sales: Denominator: Trend Percent 0% 0%