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.

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.