What is meant by a product’s "contribution margin"? How is this ratio useful in planning business...
What is meant by a product’s "contribution margin"? How is this ratio useful in planning business operations?
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Homework Answers
This contribution margin is difference between the selling price and variable cost of a product
It is an ratio of relationship between the sales to contribution margin
The contribution margin ratio is different from gross margin percent and also cannot be computed from reported amounts in an company external income statement
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What is meant by a product’s "contribution margin"? How is this
ratio useful in planning business...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.) 7,239 General, selling, and administrative expenses 4,200 $27,840 Income from operations $860 Assume that the variable costs consist of food and packaging, payroll, and 40 % of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? million...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.), 7,239 General, selling, and administrative expenses 4,200 $27,840 Income from operations $860 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? million b....
1. Define contribution margin and explain how it is used by a business - give different...
1. Define contribution margin and explain how it is used by a business - give different sets of examples, please. 2. What is the relationship between costs, volume and profit. What does each term mean? Provide an example of how you would use it. 3. What is the contribution margin ratio and contribution margin per unit? How are they used by a business
Please help! 1. Define contribution margin and explain how it is used by a business 2....
Please help! 1. Define contribution margin and explain how it is used by a business 2. What is the relationship between costs, volume and profit. What does each term mean? Provide an example of how you would use it. 3. What is the contribution margin ratio and contribution margin per unit? How are they used by a business
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $18,169.3 $ 6,129.7 4,756.0 4,402.6 2,48179 17,776.2 $ 393.1 Income from operations Assume that the variable costs consist of food and packaging: payroll; and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a...
please answer all questions Questions: 1. What is the meaning of contribution margin ration? How is...
please answer all questions
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point?...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $38,700 Food and packaging $11,180 Payroll 9,800 Occupancy (rent, depreciation, etc.) 10,960 General, selling, and administrative expenses 5,600 $37,540 Income from operations $1,160 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in...
What is “disaster recovery and business continuity planning?” How does disaster recovery planning (DRP) and business...
What is “disaster recovery and business continuity planning?” How does disaster recovery planning (DRP) and business continuity planning (BCP) relate to Accounting Information Systems (AIS)? Please include citations or links to any sources used! Thank you
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.) 7,239 General, selling, and administrative expenses 4,200 $27,840 Income from operations $860 Assume that the variable costs consist of food and packaging, payroll, and 40 % of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? million...
eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.), 7,239 General, selling, and administrative expenses 4,200 $27,840 Income from operations $860 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? million b....
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $18,169.3 $ 6,129.7 4,756.0 4,402.6 2,48179 17,776.2 $ 393.1 Income from operations Assume that the variable costs consist of food and packaging: payroll; and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a...
please answer all questions
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point?...
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