TRUE OR FALSE____ An increase in fixed costs will reduce the contribution margin TRUE OR FALSE___...
TRUE OR FALSE____ An increase in fixed costs will reduce the contribution margin
TRUE OR FALSE___ An increase in fixed costs will increase the breakeven point.
TRUE OR FALSE___ An increase in the selling price will increase the breakeven point.
TRUE OR FALSE___ Ketchup is a variable cost for A fast food restaurant.
TRUE OR FALSE--------- Real estate taxes are a variable cost for McDonalds
Homework Answers
| 1) | False | ||||||
| contribution margin = sales - variable cost | |||||||
| hence fixed cost has no effect on contribution margin | |||||||
| 2) | TRUE | ||||||
| higher the fixed cost higher will be the break even point | |||||||
| BEP = fixed cost/contribution margin | |||||||
| 3) | FALSE | ||||||
| increase in selling price will increase contribution margin | |||||||
| per unit hence will decrease the break even point | |||||||
| 4) | TRUE | ||||||
| it is indirect variable cost | |||||||
| 5) | FALSE | ||||||
| Real estate taxes are fixed cost | |||||||
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TRUE OR FALSE____ An increase in fixed costs will reduce the
contribution margin
TRUE OR FALSE___...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. At the breakeven point, total sales revenue equals total costs. If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant.
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
Corp.'s breakeven point is revenues of $1,600,000. Fixed costs are $640,000. Compute the contribution margin percentage....
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Contribution margin per unit
Contribution margin ratio
Fixed Cost
Fixed Cost per year
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A contribution margin income statement organizes costs by behavior
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Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and...
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Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
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Please find the following:
Contribution margin per unit
Contribution margin ratio
Fixed Cost
Fixed Cost per year
Breakecen Sales
Cullumber Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $100 throughout the country to loyal alumni of over 3,300 schools. Cullumber's variable costs are 40% of sales, fixed costs are $116,000 per month. (a1) * Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38...
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