contribution margin ratio
Q: Contribution margin ratio definition and how is useful in planning business operations?
A: Solution:- Contribution margin ratio definition as follows:-
Q: Define and explain the contribution margin ratio.
A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…
Q: Variable cost per uni
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: how does the contribution margin pricing method differ from ratio pricing method?
A: The question is based on the concept of pricing policy and methods. The product's price can be…
Q: The variable cost ratio is calculated as:
A: Particular Sale price per unit Variable cost per unit Variable cost ratio…
Q: total contribution .margin
A: Total contribution margin = Total sales - Total variable cost
Q: Define cost-volume-profit analysis?
A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…
Q: contribution margin
A: Number of units sold Sales/Selling price $880000/$55 = 16000
Q: Labor efficiency variance
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing 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: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Describe analyzing of profit using contribution margin.
A: The contribution margin ratio is the percentage of difference in a company's sales and variable…
Q: List the most important assumptions of cost-volume-profit analysis.
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…
Q: Contribution Margin per Unit & Contribution Margin Ratio
A: Under Scenario 1: Particulars Daycare Boarding Grooming Total Sales price (a) $18 $25 $25…
Q: What is the difference between Cost-Volume Profit graph and Profit-Volume graph?
A: Introduction:- Cost-Volume Profit graph displays the relationship between the cost of units…
Q: e contribution margin income statement
A: Degree of operating leverage = Contribution margin/Pretax income
Q: e contribution margin percentage?
A: Contribution Margin % = (( Sales Revenue - Variable cost )/(Sales revenue ) ) * 100
Q: Define ( a ) contribution margin, ( b ) contribution marginratio, and ( c ) average contribution…
A: Contribution margin helps management to determine the amount of sales revenue left after considering…
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 weighted average cost method?
A: The weighted average cost method is one of the methods to ascertain the unit cost of a product. It…
Q: What is the total variable cost per unit What is the total fixed cost What is the contribution…
A: Contribution margin per unit=Revenue per unit- Variable cost per unitRevenue per unit×100
Q: Describe the components of contribution margin.
A: Contribution Margin: Contribution Margin refers to the margin of profit expected by the company. The…
Q: Define and distinguish between contribution margin per unit and contribution margin percentage?
A: Contribution margin is the difference between the total revenue and total variable costs of a…
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: Calculate budgeted contribution margin per unit
A: Formula: Budgeted contribution margin per unit = Budgeted sales price per unit - Budgeted variable…
Q: Explain how the segment margin differs from the contribution margin.
A: Income statement: The financial statement which reports revenues and expenses from business…
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: Define and describe contribution margin per unit.
A: Contribution margin: Contribution margin refers to the process or theory that is used to judge the…
Q: Compute contribution margin using variable com
A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…
Q: How is contribution margin calculated?
A: Contribution margin means sales revenue over and above the variable costs of production and selling…
Q: What is the weighted average contribution margin percentage?
A: Contribution margin ratio of the business shows ratio of contribution margin with sales revenue of…
Q: contribution margin percentage
A: Contribution margin percentage = (Selling price per unit - Variable cost per unit)*100/Selling price…
Q: Write the equation for the Contribution margin?
A: Cost volume profit analysis: CVP analysis established the relation between cost, volume, and profit…
Q: PRODUCTIVITY RATIO
A: Units expected to be produced in 0.5 minutes 1 Units expected to be produced in 'n' minutes Total…
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: Explain an example how to calculate contribution margin ratio.
A: Contribution margin ratio: Contribution margin ratio is the difference between the company’s sales…
Q: Define cost variance.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
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: Explain how to prepare contribution margin income statement.
A: Contribution margin: Contribution margin refers to the process or theory that is used to judge the…
Q: Express the two ways of contribution margin?
A: Contribution margin is the difference between the sales revenue and the variable costs.
Q: Distinguish between fixed cost and variable cost.
A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…
Q: Contribution margin is
A: The formula Contribution= sales - variable cost
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: Define contribution margin, contribution margin per unit, and contribution margin percentage.
A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…
Q: Explain contribution margin.
A: Contribution Margin is the amount of revenue available after variable costs to cover fixed expenses…
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- Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,400 $3,200 Variable cost of goods sold (3,400) (2,140) Manufacturing margin $2,000 $1,060 Variable selling expenses (758) (388) Contribution margin $1,242 $672 Fixed expenses (580) (270) Operating income $662 $402 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,000 1,500 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane Sales v 1.380,000 X Variable cost of goods sold v ৪78.600 X MacBook AirProduct Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane $2,600 $4,200 (2,650) (1,740) $1,550 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador 2,000 Hurricane 1,500 Sales unit volume Conquistador (626) $924 (430) $494 % a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Hurricane $860 (444) % $416 (170) $246Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,800 $3,800 Variable cost of goods sold (3,650) (2,550) Manufacturing margin $2,150 $1,250 Variable selling expenses (932) (604) Contribution margin $1,218 $646 Fixed expenses (570) (260) Operating income $648 $386 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,000 2,100 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc.Contribution Margin by Product Conquistador Hurricane…
- Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,600 $2,800 Variable cost of goods sold (2,900) (1,880) Manufacturing margin $1,700 $920 Variable selling expenses (688) (360) Contribution margin $1,012 $560 Fixed expenses (480) (220) Operating income $532 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 1,600 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane…Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,800 $3,800 Variable cost of goods sold (3,650) (2,550) Manufacturing margin $2,150 $1,250 Variable selling expenses (932) (604) Contribution margin $1,218 $646 Fixed expenses (570) (260) Operating income $648 $386 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,000 2,100 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc.Contribution Margin by Product…Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,400 $2,800 Variable cost of goods sold (2,770) (1,880) Manufacturing margin $1,630 $920 Variable selling expenses (706) (444) Contribution margin $924 $476 Fixed expenses (430) (190) Operating income $494 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700
- Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,000 $3,200 Variable cost of goods sold (3,150) (2,140) Manufacturing margin $1,850 $1,060 Variable selling expenses (800) (484) Contribution margin $1,050 $576 Fixed expenses (490) (230) Operating income $560 $346 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,200 2,400 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane…Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Conquistador Hurricane $5,000 $3,200 Sales unit volume (3,150) $1,850 (700) $1,150 (540) $610 2,700 (2,140) $1,060 $ (420) In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $640 (260) % $380 1,900 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Line Item Description Conquistador Hurricane $ $ $ % b. What advice would you give to the management of Galaxy…Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,400 $3,000 Variable cost of goods sold (2,770) (2,010) Manufacturing margin $1,630 $990 Variable selling expenses (750) (450) Contribution margin $880 $540 Fixed expenses (410) (220) Operating income $470 $320 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 1,500 Question Content Area a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product blank…
- Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $6,200 $4,000 Variable cost of goods sold (3,910) (2,680) Manufacturing margin $2,290 $1,320 Variable selling expenses (864) (520) Contribution margin $1,426 $800 Fixed expenses (670) (320) Operating income $756 $480 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,700 1,900 Question Content Area a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc.Contribution Margin by Productblank…Product profitability analysisPower Train Sports Inc. manufactures and sells two .styles of All Terrain Vehicles(ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility.The manufacturing facility operates at 100% of capacity. The following per-unitinformation is available for the two products: In addition, the following sales unit volume information for the period is as follows: A. Prepare a contribution margin by product report. Calculate the contributionmargin ratio for each.B. What advice would you give to the management of Power Train Sports Inc.regarding the relative profitability of the two products?Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Sales unit volume In addition, the following sales unit volume information for the period is as follows: Conquistador $6,400 (4,030) $2,370 (1,026) $1,344 (630) $714 Conquistador $ The 2,600 Galaxy Sports Inc. Contribution Margin by Product would increase. Hurricane $4,000 (2,680) $1,320 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. % Conquistador Hurricane Hurricane $ (600) $720 (290) $430 % 1,900 b. What advice would you give to the management of Galaxy Sports…
