Statements regarding the contribution margin ratio

Assignment Help Accounting Basics

Reference no: EM13141255

Which of the following statements regarding the contribution margin ratio is not true?

a. The contribution margin ratio is equal to the contribution margin per unit divided by the selling price.

b. The contribution margin ratio is the amount of each sales dollar that goes toward covering fixed costs and generating a profit.

c. The contribution margin ratio is equal to variable cost per unit divided by fixed cost per unit.

d. The contribution margin ratio is useful when companies that sell a variety of products calculate break-even point.

Reference no: EM13141255

Questions Cloud

Pay for the investment : If Alice decides to buy the investment, she would receive the first $250 payment one year from today. How much should Alice be willing to pay for this investment?

How many liters of oxygen gas will react : How many liters of oxygen gas, at standard temperature and pressure, will react with 25.0 grams of magnesium metal? 2 Mg + O2 yields 2 MgO

Report from the lease transaction : In its 2004 income statement, what amount of interest expense should Gonzalez report from this lease transaction?

What is the formula of the oxide : A strip of electrolytically pure copper weighing 3.178 gram is strongly heated in a stream of oxygen until it is all converted to a black oxide. The resultant black powder weighs 3.978 g. What is the formula of the oxide?

Statements regarding the contribution margin ratio : Which of the following statements regarding the contribution margin ratio is not true?

What mass of fe(c5h5)2 could theoretically be formed : What is the limiting reagent in this procedure? B. Based on your answer to part A, what mass of Fe(C5H5)2 could theoretically be formed? C. A student who carried out this reaction obtained 2.7 g of ferrocene. What was the percent yield for this re..

Define wlan : In WLAN data can be sent in one of the two different network modes. What are these modes?

Carrying value-book value of the bonds : Using this information, with all other information the same, determine the carrying value [book value] of the bonds at June 30 of the current year?

Write a research essay : Write a research essay on your views as to when each of the two approaches would be appropriate, and provide examples of where each of the approaches might be appropriate in the current economic and business environment.

User Account

All Pages