The contribution margin ratio can be calculated as:Group of answer choicestotal contribution margin divided by total sales.contribution margin per unit multiplied by selling price per unit.all of the options are correct.total sales divided by total contribution margin.
Question
The contribution margin ratio can be calculated as:Group of answer choicestotal contribution margin divided by total sales.contribution margin per unit multiplied by selling price per unit.all of the options are correct.total sales divided by total contribution margin.
Solution
The contribution margin ratio can be calculated as total contribution margin divided by total sales. This ratio shows what percentage of sales is made up of the contribution margin. The contribution margin is the revenue remaining after subtracting the variable costs that go into producing a product. The contribution margin ratio can be used to evaluate the profitability for individual items that a company makes and sells.
Specifically, the contribution margin ratio is used to review the variable costs included in the production cost of individual items. It is also used in break-even analysis and in determining the optimal product mix of a company producing multiple products.
Similar Questions
If the contribution margin per unit is $15 and selling price per unit is $20, the contribution margin ratio is:Group of answer choices133%.75%.60%.80%.
The contribution margin ratio:Multiple ChoiceIs the percent of each sales dollar that remains to cover the variable and fixed costs.Cannot be used in conjunction with other analytical tools.Is the same as the contribution margin per unit.Is the percent of each sales dollar that remains after deducting the unit variable cost.Is the percent of each sales dollar that remains after deducting the unit fixed cost.
Contribution margin is calculated as:Question 4Select one:a.sales minus cost of goods soldb.sales minus total variable costsc.sales minus total variable manufacturing costsd.sales minus total variable manufacturing costs and total fixed manufacturing costs
The contribution margin per unit equals:Group of answer choicesselling price - fixed costs per unitselling price - variable costs per unitfixed cost - contribution margin ratioselling price - costs of good sold
The contribution margin is calculated by subtracting:a.Variable costs from fixed costsb.Fixed costs from total costsc.Variable costs from sales revenued.Sales revenue from variable costs
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