Which of the following formulae is the right formula for calculating contribution margin ratio? A. Contribution margin ratio = contribution margin x net sales revenue B. Contribution margin ratio = contribution margin + net sales revenue C. Contributio (2024)

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• What is the correct formula to calculate the contribution margin ratio? a) Fixed Costs / Unit Contribution Margin b) (Sales - Variable Costs) / Sales c) (Fixed Costs + Target Profit) / Unit Contribution Margin d) None of the above
• Which of the following formulas is used to calculate the contribution margin ratio? a. (Sales - Fixed expenses) / Sales b. (Sales - Cost of goods sold) / Sales c. (Sales - Variable expenses) / Sales d. (Sales - Total expenses) / Sales
• To find the sales revenue needed to breakeven, the formula used could be: A. contribution margin per unit/fixed expenses. B. fixed expenses/contribution margin per unit. C. contribution margin ratio/fixed expenses. D. fixed expenses/contribution margi
• a) Calculate and expalin the contribution margin ratio by-product: Contribution margin - $ 5,088,000 Sales - 4,800 b) Calculate and explain the contribution margin ratio by-product: Contribution margin - $3,943,200.00 Sales - 4650
• Contribution margin ratio is computed by: A. dividing operating income by contribution margin. B. dividing sales revenue by contribution margin. C. dividing contribution margin by sales revenue. D. dividing contribution margin by operating income.
• Which of the following is true of the contribution margin income statement? a. Selling costs are never included in the calculation of the contribution margin. b. The contribution margin is the amount that is available to cover fixed costs. c. Both fixed a
• Contribution margin ratio is the ratio of contribution margin to: A. cost of goods sold. B. total variable costs. C. net sales revenue. D. total fixed costs.
• Which of the following equations can be used to compute a firm's magnitude of operating leverage? a. Net income/sales b. Fixed costs/contribution margin c. Contribution margin/net income d. Net income/contribution margin
• ________ is the excess of sales over the cost of goods sold. A) Gross margin. B) Contribution-margin ratio. C) Variable-cost ratio. D) Contribution margin. the excess of sales over the cost of goods sold. A) Gross margin. B) Contribution-margin ratio. C)
• Contribution margin ratio is equal to ________. Select one: A. contribution margin divided by net sales revenue B. net sales revenue minus variable costs C. net sales revenue per unit minus variable costs per unit D. fixed costs divided by contribution ma
• Which of the following is not a feature of a contribution income statement? A. The contribution margin is disclosed. B. Variable selling expenses are not subtracted in calculating contribution margin.
• The contribution margin ratio is: A. sales divided by contribution margin B. sales divided by fixed expenses C. sales divided by variable expenses D. contribution margin divided by sales
• Which of the following is the income statement formula for the absorption costing method? a. Sales revenue - COGS = Gross Profit margin - all fixed expenses = operating income. b. Sales revenue - all variable costs = contribution margin - all fixed expens
• Which of the following is the correct formula for calculating gross profit percentage? A. Net sales revenue/Net profit. B. Gross profit/Net sales revenue. C. Net sales revenue/Gross profit. D. Net profit/Net sales revenue.
• Which of the following items appears on a contribution margin income statement but not on a GAAP income statement? a. Sales b. Gross margin c. Net income d. Contribution margin
• Given the following data: Contribution margin $20,000 Net income $10,000 Contribution margin ratio 0.40 Compute the sales revenue.
• Use the contribution margin ratio CVP formula to compute Big Time's breakeven revenue in dollars. If the average trade leads to $800 in revenue for Big Time, how many trades must be made to breakeven?
• Which of the following income statement formats is most commonly used with flexible budgeting? a. Sales - Variable costs = Contribution margin; Contribution margin - Fixed costs = Net income b. Sales - Cost Of Goods Sold = Gross Margin; Gross Margin - O
• Contribution margin ratio is equal to: A. fixed costs divided by contribution margin per unit. B. net sales revenue minus variable costs. C. contribution margin divided by net sales revenue. D. net sales revenue per unit minus variable costs per unit.
• Calculate the contribution margin, the contribution margin ratio, and the per-visit revenue, costs, and operating income.
• The formula to find the breakeven point or a target profit volume in terms of the number of units that need to be sold is: A. (Fixed expenses + Variable expenses) / Sales revenue B. (Fixed expenses + Operating income) / Contribution margin per unit C.
• Which of the following is the correct formula for calculating return on investment? a. Net profit divided by Sales b. Cross profit divided by Sales c. Operating profit divided by Average total assets d. Earnings available to stockholders divided by Number
• Given the following data: Contribution margin $20,000 Net income $10,000 Contribution margin ratio 0.40 Compute the variable cost ratio.
• Suppose a firm had sales of $210,000 and net income of $6,000 for the year. What is the profit margin on sales ratio? Calculate the profit margin on sales ratio. Begin by selecting the formula you wil
• Given the following data: Sales revenue $80,000 Net income $5,000 Variable cost ratio 0.50 Compute the contribution margin ratio.
• Below is a contribution format Income statement for BlueBell Corporation. Sales (5,000 units) 300,000 Variable expenses 240,000 Contribution margin 30,000 Fixed expenses 58,800 Net operating income 1,200 1. What is the contribution margin ratio? 2. If sa
• Shown below is an income statement in the traditional format for a firm with sales volume of 20,000 units: [TABLE] Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio
• Sales amount to $774,000, variable costs are 59% of sales, and fixed cost is $120,000. What is the contribution margin ratio? a. 41% b. 44% c. 39% d. 37%
• Given the following data: Sales revenue $120,000 Contribution margin $60,000 Fixed costs $30,000 Compute the contribution margin ratio.
• Which formula "calculates" the return on assets ratio? a. (Net Income + Interest Expense)/Average Assets b. (Net Income + Extraordinary Items)/Average Assets c. (Net Income + Discontinued Operations)/Average Assets d. (Net Income + Income Tax Expense)
• The income statement of a firm with a sales volume of 7,900 units is shown in the table. Calculate the contribution margin ratio.
• How do you calculate the contribution margin ratio of a company with sales of $180,000 and operating income of $37,000? Variable costs of the company are 52% of sales.
• Given the following data: Sales revenue $80,000 Net income $5,000 Variable cost ratio 0.50 Compute the contribution margin.
• Given the following data: Contribution margin $20,000 Net income $10,000 Contribution margin ratio 0.40 Compute the fixed costs.
• A company has budgeted sales of $200,000, a profit of $60,000, and fixed expenses of $40,000. Calculate the contribution margin ratio.
• If a company has a 45% contribution margin ratio and has fixed costs of $250,000, how much sales does it need to earn a gross profit of $270,000? a.$1,000,000 b.$555,556 c.$818,182 d.$652,500
• If a company has a 45% contribution margin ratio and has fixed costs of $250,000, how much sales does it need to earn a gross profit of $200,000?
• If a company has a 57% contribution margin ratio and has fixed costs of $263,000, how much sales does it need to earn a gross profit of $231,000?
• A company has Fixed cost of $270,000 a unit contribution margin of $14, and a contribution margin ratio of 55%. If the form wants to earn a target $60,000 pretax income, what amount of sales must the
• For Garland Company, sales are $1,000,000, fixed expenses are $300,000, and the contribution margin ratio is 36%. What is net income?
• Use the Contribution Margin Method to calculate Target Profit sales and units given a target profit of $40,000. Total Per Unit % of Sales Sales $250 100% Variable expenses 170 68% Contribution margin 80 32% Fixed expenses 20,000
• A company's net sales were $677,100, its cost of goods sold was $231,810, and its net income was $34,250. Calculate its gross margin ratio.
• A company's net sales were $749,600, its cost of goods sold was $247,370 and its net income was $74,750. Calculate the gross margin ratio.
• A company's net sales were $928,350, its cost of goods sold was $487,520, and its net income was $160,390. Calculate its gross margin ratio.
• A company's net sales were $676,600, its cost of goods sold was $236,810, and its net income was $33,750. Calculate its gross margin ratio.
• A company's net sales were $727,700, its cost of goods sold was $244,510, and its net income was $62,450. Calculate its gross margin ratio.
• Use contribution margin ratio CVP formula to determine the sales revenue Storytime Park needs to break even.
• A company's net sales were $834,800, its costs of goods sold was $458,740, and its net income was $118,420. Calculate its gross margin ratio.
• How do you calculate contribution margin, net margin, and net profit? Sales $176,744,000 Labor Costs $17,222,000 Depreciation $11,375,000 Total Variable Costs $118,847,000 Admin Costs $1,681,000 Other (unusual income or expenses) $7,779,000 Total
• Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. Interpret the gross margin ratio for case a.
• In a contribution income statement: Select one. - All fixed costs are grouped together and subtracted from gross profit. - Net income plus all fixed expenses equal the contribution margin. - The contribution margin is computed as the difference betwe
• The gross margin percentage shows how much of each sales dollar is available after, which of the following income statement components has been covered? A. Cost of goods sold B. Contribution margin C. Operating expenses D. Net income
• In a segmented contribution format income statement, what is the best measure of the long-run profitability of a segment? A. its gross margin B. its contribution margin C. its segment margin D. its segment margin minus an allocated portion of common fixed
• Gross margin percentage is calculated by. a. (Net cost of sales divided by net sales)*100 b. (gross margin divided by inventory turnover)*100 c. (gross margin divided by net sakes)*200 d. none of the above e. (gross margin minus non-operating expense
• If a company has a 45% contribution margin ratio and has fixed costs of $250,000, how much sales does it need to earn a gross profit of $200,000? a. $1,000,000 b. $555,556 c. $818,182 d. $652,500
• If a company has a contribution margin ratio of 45% and has fixed costs of $250,000, how much sales does it need to earn a gross profit of $200,000? a. $1,000,000 b. $555,556 c. $818,182 d. $652,500
• If a company has a 57% contribution margin ratio and has fixed costs of $263,000, how much sales does it need to earn a gross profit of $231,000? a) $866,667 b) $461,404 c) $900,000 d) $405,263
• Which of the following is the correct mathematical expression to derive a company's capital turnover? -Sales revenue / invested capital. -Contribution margin / invested capital. -Income / invested capital. -Invested capital / sales revenue. -Inv
• How much sales are required to earn a target net income of $128,000 if total fixed costs are $160,000 and the contribution margin ratio is 40%? A. $400,000. B. $720,000. C. $648,000. D. $320,000.
• Which of the following is the correct formula to calculate inventory turnover? A. Inventory turnover = Cost of goods sold / Average merchandise inventory. B. Inventory turnover = Cost of goods sold * Average merchandise inventory. C. Inventory turnover
• Contribution margin is: (a) the excess of sales revenue over variable cost (b) another term for volume in the "cost-volume-profit" analysis (c) profit (d) the same as sales revenue
• Sales are $676,000 and variable costs are $534,000. What is the contribution margin ratio? (If applicable, round answer to the nearest percent). A. 79% B. Cannot be determined because amounts are not expressed per unit. C. 42% D. 21%
• Which of the following is the correct formula for calculating residual income? a. Weighted Average Cost of Capital - Net Operating Profit After Tax b. Operating income - Minimum acceptable operating income c. Historical cost of assets - Accumulated deprec
• A company's net income was $780,000; its net assets were $5,200,000; its net sales were $9,000,000. Calculate the company's profit margin ratio.
• If sales are $899,674, variable costs are $406,528, and operating income is $232,893, what is the contribution margin ratio?
• If sales are $914,000, variable costs are $498,130, and operating income is $260,000, what is the contribution margin ratio?
• A company had net sales of $545,000 and the cost of goods sold was $345,000. Its net income was $92,000. Calculate the company's gross margin ratio.
• A company had net sales of $780,300 and cost of goods sold of $557,970. Its net income was $23,830. Calculate the company's gross margin ratio.
• Which ratio can be used to assess how much profit was made, on average, on each dollar of sales, after deducting the cost of goods sold? A. Net profit margin B. Return on sales ratio C. Gross profit percentage D. Earnings per share
• Return on investment is calculated by dividing: A) controllable margin by sales. B) contribution margin by sales. C) contribution margin by average operating assets. D) controllable margin by aver
• A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000. When actual sales were $1,000,000 variable costs were $750,000. Determine the contribution margin ratio: a. 35% b. 25% c. 30% d. 15%
• What is the break even point in sales dollars assuming contribution margin is $22.20 per unit and there are $335,000 in fixed costs? Prepare a forcasted contribution margin income statement assuming
• Margin of safety is computed as: A) Actual sales - Breakeven sales. B) Contribution margin - Fixed Costs. C) Break-even Sales - Variable costs. D) Actual Sales - Contribution Margin.
• Shown below is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Calculate the contribution margin ratio. | Revenues | $220,000 | Cost of goods sold ($9,500 + $2.90/unit) | 67,500 | Gross profit | $152,500 | O
• Sales are $750,000, variable costs are 70% of sales, and income from operations is $100,000. What is the contribution margin ratio and fixed cost?
• Assume MIX Inc. has a sales volume of $1,162,000 for two products with May sales and contribution margin ratios as follows: Product A: Sales $454,000; Contribution Margin Ratio 30%. Product B: Sales $708,000; Contribution Margin Ratio 60%. Assume MIX's f
• A company's gross profit was $86,750 and its net sales were $352,600. Calculate its gross margin ratio.
• A company's gross profit was $83,750 and its net sales were $347,800. Calculate its gross margin ratio.
• A company's gross profit was $94,100 and its net sales were $384,400. Calculate its gross margin ratio.
• Assume sales are $750,000, variable costs are 70% of sales, and income from operations is $100,000. What are the contribution margin ratio and fixed cost?
• For Garland Company, sales are $2,000,000, fixed expenses are $600,000, and the contribution margin ratio is 36%. What is net income? A. $504,000 B. $120,000 C. $720,000 D. $216,000
• Compute the following items: a.Unit contribution margin b.Contribution margin ratio c.Break even sales dollars d.If the sales volume increases by 20% what will be the change in net operating incom
• a. Compute the gross profit margin ratio, the return on equity and the return on assets, rounding calculations to two decimal places. b. Does the firm have positive or negative financial leverage? Briefly explain.
• What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? a. Margin of safety ratio b. Contribution margin ratio c. Costs and expenses ratio d. Profit ratio
• Hudson Co. reports the contribution margin income statement for 2017. Sales (10,400 units at $300 each) $3,120,000 Variable costs (10,400 units at $240 each)$2,496,000 Contribution margin $624,000 Fixed costs $468,000 Pre-tax income $156,000 1. Compute t
• How does the total contribution margin (unit contribution margin times total number of units sold) differ from the gross margin often seen on companies' financial statements?
• Contribution margin is: O A. the excess of sales revenue over variable cost O B. another term for volume in the "cost-volume-profit" analysis O C. the excess of sales revenue over cost of goods sol
• We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000 Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point base
• If sales are $815,000, variable costs are 79% of sales, and operating income is $262,000, what is the contribution margin ratio? a) 21% b) 25% c) 75% d) 79%
• If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio? A. 32% B. 45% C. 62% D. 55%
• If sales are $525,000, variable costs are 56% of sales, and operating income is $50,000, what is the contribution margin ratio?
• If sales are $525,000, variable costs are 64% of sales, and operating income is $50,000, what is the contribution margin ratio? a. 36% b. 26.5% c. 9.5% d. 64%
• If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 45% b. 55% c. 62% d. 32%
• If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 62% b. 45% c. 32% d. 55%
• A product sells for $30 per unit and has a contribution margin ratio of 45%. Fixed expenses total $130,000 annually. How many units must be sold to yield a profit of $40,000?
• Given the following data: Contribution margin $20,000 Net income $10,000 Contribution margin ratio 0.40 Compute the break-even point (in dollars).
• How much sales are required to earn a target income of $70,000, if total fixed costs are $100,000 and the contribution margin ratio is 40%? a. $400,000 b. $200,000 c. $330,000 d. $425,000
• How much sales are required to earn a target income of $80,000, if total fixed costs are $100,000 and the contribution margin ratio is 40%?
• How much sales are required to earn a target income of $85,000, if total fixed costs are $105,000 and the contribution margin ratio is 45%?