Problem: Cost-Volume-Profit Relationships & Variable Costing
Answer the questions below completely and explain your answers.
I. Explain what the contribution margin ratio is and examine how it is used in managerial decision-making.
II. Examine how the break-even point would change for each scenario: (i) the selling price per unit increases; (ii) fixed cost decreases throughout the entire range of activity; (iii) variable cost per unit decreases.
III. Compare and contrast between variable costing and absorption costing.
IV. Explain and give examples of computing unit product cost under variable costing and absorption costing?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.