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23 Nov 2019

The term used to describe how much a product sold contributes toincome over and above its variable cost is:

A) Gross Margin

B) contribution margin

c) gross profit

D) gross contribution

E) gross sales

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Lelia Lubowitz
Lelia LubowitzLv2
24 Apr 2019
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Related questions

The contribution margin ratio explains the percentage of each sales dollar that

a. contributes towards fixed costs and generating a profit.

b. contributes towards variable costs.

c. contributes towards period expenses.

d. contributes towards sales revenue.

 

a. Hillary Swank Clothiers had sales of $383,000 and a cost of goods sold of $260,000. What is the gross profit margin (ratio of gross profit to sales)?

b. If the average firm in the clothing industry had a gross profit of 25 percent, how is the firm doing?

________ 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

Answer:

Which statement is FALSE?

A) Each different sales-mix of products has a differentbreak-even point.

B) Changes in the sales-mix of products sold affects a company'snet operating profit.

C) Changes in the sales-mix of products sold affects a company'scontribution margin.

D) If the sales-mix of products sold changes, the break-evenpoint does not change.

Answer:

With mixed costs, the ________ element is unchanged over therelevant range and the ________ element varies proportionately withcost-driver activity.

A) variable cost; fixed cost

B) fixed cost; variable cost

C) fixed cost; step cost

D) step cost; variable cost

Answer:

The sales price is $30 per unit, the contribution margin is $8per unit and total fixed costs are $32,000. What is the break-evenpoint in units?

A) 857

B) 1,200

C) 2,000

D) 4,000

Answer:

If the selling price per unit increases, what is the effect onthe break-even point? (Assume no other changes.)

A) The break-even point increases.

B) The break-even point decreases.

C) The break-even point remains the same.

D) The break-even point is zero.

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