Contribution margin is

Q: How do you calculate contribution margin?

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

Q: Define cost behaviour.

A: High-Low Method: The high-low method is the method by which the variable component and the fixed…

Q: The variable cost ratio is calculated as:

A: Particular   Sale price per unit   Variable cost per unit   Variable cost ratio…

Q: o maximize its total contribution margin

A: Contribution margin per machine hour = Contribution margin per unit/Machine hours per unit   X Y…

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: Understand thedifferences between directand indirect costs

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

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: 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: Cost behavior Costs Value Chain O Cost drivers

A: Answer: Cost behavior is defined as the changing nature of cost dependent on any units. Costs are of…

Q: What is the Contribution Margin?

A:

Q: Define Contribution margin? Give three examples?

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

Q: What is a cost driver?

A: A cost driver is a concept used in management accounting. The cost of specific business operations…

Q: e contribution margin percentage?

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

Q: contribution margin ratio

A: The contribution margin is the amount left after subtracting the variable costs from the selling…

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 is the correlation between fixed, variable, and semi-variable costs??

A: Introduction:- Fixed Costs – Costs are same irrespective of the number of output produced Variable…

Q: Examples of varaible cost

A: Variable costs are those costs which changes along with change in level of activity. As production…

Q: Explain a linear cost function.

A: A function where the cost depends linearly upon the number of units produced is called a linear cost…

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: 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: 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: How does the contribution margin affect the cost-volume-profit analysis?

A: Cost Volume Profit analysis means the breakeven analysis which generally used to determine the break…

Q: contribution margin percentage

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

Q: Define prime costs?

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Understand thedifferences between variablecosts and fixed costs.

A: Fixed costs are those costs which remain fixed regardless of output but variable costs are those…

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: 1) What is the assumption of cost structure? 2) Calculate contribution Margin

A: A company's overall expenses are comprised of both fixed and variable costs, and together they make…

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: Describe the difference between prime costs and conversion costs?

A: Solution:-  Difference between prime costs and conversion costs as follows under:-

Q: What is total cost?

A: The answer is explained as follows:

Q: Define sunk cost

A: Companies when making crucial decisions about their operations consider relevant costs i.e. costs…

Q: Discuss the Cost- Volume- Profit assumptions

A: Cost-volume-profit analysis: It is also called break-even analysis which measures the impact on…

Q: Express the two ways of contribution margin?

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

Q: unit contribution margin. numb

A: Unit contribution margin = Sales price per unit - Variable cost per unit

Q: Please explain what is meant by the contribution margin.  Also, please provide an example of how the…

A: contribution margin is sales price minus variable cost is called contribution margin, contribution…

Q: Explain contribution margin.

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