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Sales mix is: important to sales managers but not to accountants. easier to analyze on absorption costing income statements.
If the contribution margin per unit is $15 and it takes 3.0 machine hours to produce the unit, the contribution margin per unit of limited resource is:
Assuming that machine time is limited to 3,000 hours, how should it allocate the machine time to maximize its income?
When a company has a limited resource, it should apply additional capacity of that resource to providing more units of the product or service:
The degree of operating leverage: can be computed by dividing total contribution margin by net income.
A high degree of operating leverage: Indicates that a company has a larger percentage of variable costs relative to its fixed costs.
Fixed manufacturing overhead costs are recognized as: period costs under absorption costing.
Net income computed under absorption costing will be: Higher than net income under variable costing in all cases.
What approach should be used to calculate the breakeven point of a company that has many products?
How is the contribution margin per unit of limited resource computed? The response/answer should be typed, single spaced, in times new
What is the major rationale for the use of variable costing? Discuss why variable costing may not be used for financial reporting purposes.
If the company has fixed costs of $199,500, how many units of each model must the company sell in order to break even?
Product A requires 2 hours, Product B requires 3 hours. Compute the contribution margin per unit of limited resource for each product.
Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio?
The related costs are $160,000 and $100,000. What are the fixed and variable costs at any level of activity?
Define the term "margin of safety." If Stine Company expects to sell 1,250 units of its product at $12 per unit, and break-even sales for the product
Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
Compute the variable and fixed cost elements using the high-low method. Estimate the total cost if the company produces 8,500 units.
Define the terms variable costs, fixed costs, and mixed costs. Classify each cost above as either variable, fixed, or mixed.
Prepare a graph showing the behavior of maintenance costs, and identify the fixed and variable cost elements. Use 2,000-hour increments
Identify the above costs as variable, fixed, or mixed. Calculate the expected costs when production is 5,000 units.
What is the contribution margin ratio? What is the break-even point in dollars?
Compute the contribution margin ratio and the margin of safety ratio. Determine the sales dollars required to earn net income of $390,000.
Compute the break-even point in dollars for 2012. Compute the break-even point in dollars under each of the alternative courses
Compute the break-even point in total sales dollars and in units for 2012. Sally has proposed a plan to get the partnership "out of the red"