. Advertisement .
..3..
. Advertisement .
..4..
......... ADVERTISEMENT .........
..8..

......... ADVERTISEMENT .........
..8..

Q | R | S | T | |
Target sales | $ 687,500 | $ 480,000 | $ 146,250 | |
Variable expenses | 192,500 | 198,000 | ||
Fixed expenses | 165,000 | 82,000 | ||
Operating income (loss) | $ 90,000 | $ 133,000 | ||
Units sold | 110,000 | 13,000 | 16,500 | |
Contribution margin per unit | $ 6.60 | $ 9.00 | $ 38.00 | |
Contribution margin ratio | 0.55 |
Commpany | ||||
Q | R | S | T | |
Target sales | $ 687,500 | $ 480,000 | $ 146,250 | $ |
Variable expenses | 192,500 | 198,000 | ||
Fixed expenses | 165,000 | 82,000 | ||
Operating Income (loss) | $ 90,000 | S | $ | $ 133,000 |
Units sold | 110,000 | 13,000 | 16,500 | |
Contribution margin per unit | $ 6.60 | S | $ 9.00 | $ 38.00 |
Contribution margin ratio | 0.55 |
(1) A. Variable expenses
B. Fixed expenses
C. Target sales
D. Total expenses
(2) A. Contribution margin
B. Operating income
C. Variable expenses
(3) A. Contribution margin per unit
B. Contribution margin ratio
C. Units sold
(4) A. Q Company
B. R Company
C. S Company
D. T Company
(5) A. Its high fixed costs
B. Its low fixed costs
C. Its high sales price
Contribution margin is the gap between variable and sales costs. The figure can be expressed in dollars or in the form of the form of a ratio. Contribution margin is determined by: Contribution Margin Ratio = Contribution Margin / Sales
The contribution margin ratio reflects the proportion of sales that can be used to pay for fixed expenses.
1 Answer