Question

Chapter 5 Cost-Volume-Profit Relationships What is the Contribution income statement? __________________________ __________________________ __________________________ __________________________ __________________________ What...

Chapter 5 Cost-Volume-Profit Relationships

What is the Contribution income statement?

__________________________

__________________________

__________________________

__________________________

__________________________

What is the gross profit ratio?_____________________________________________

What is the contribution margin ratio?______________________________________

What is the break-even point?_____________________________________________

Give 3 ways of stating breakeven: (relating items from the contribution income statement)

_____________________________

_____________________________

_____________________________

What is the formula to find the breakeven number of units?____________________________

How can you determine the number of units necessary to attain a certain level of profit?

_____________________________________________________________________________

How can you determine total sales at the breakeven point?_____________________________

What is a fixed cost?_____________________________________________________________

How does a fixed cost behave in total?______________________________________________

How does a fixed cost behave per unit?______________________________________________

What is a variable cost?___________________________________________________________

How do variable costs behave in total?_______________________________________________

How do variable costs behave per unit?_______________________________________________

What is margin of safety?__________________________________________________________

Chapter 5 Cost-Volume-Profit Relationships

The dashed lines indicate a "Fill in the blank" area

1) What is the Contribution income statement?

__________________________

__________________________

__________________________

__________________________

__________________________

2) What is the gross profit ratio?_____________________________________________

3) What is the contribution margin ratio?______________________________________

4) What is the break-even point?_____________________________________________

5) Give 3 ways of stating breakeven: (relating items from the contribution income statement)

_____________________________

_____________________________

_____________________________

6) What is the formula to find the breakeven number of units?____________________________

7) How can you determine the number of units necessary to attain a certain level of profit?

_____________________________________________________________________________

8) How can you determine total sales at the breakeven point?_____________________________

9) What is a fixed cost?_____________________________________________________________

10) How does a fixed cost behave in total?______________________________________________

11) How does a fixed cost behave per unit?______________________________________________

12) What is a variable cost?___________________________________________________________

13) How do variable costs behave in total?_______________________________________________

17) How do variable costs behave per unit?_______________________________________________

18) What is margin of safety?__________________________________________________________

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Chapter 5 Cost-Volume-Profit Relationships The dashed lines indicate a "Fill in the blank" area 1) What...
Chapter 5 Cost-Volume-Profit Relationships The dashed lines indicate a "Fill in the blank" area 1) What is the Contribution income statement? __________________________ __________________________ __________________________ __________________________ __________________________ 2) What is the gross profit ratio?_____________________________________________ 3) What is the contribution margin ratio?______________________________________ 4) What is the break-even point?_____________________________________________ 5) Give 3 ways of stating breakeven: (relating items from the contribution income statement) _____________________________ _____________________________ _____________________________ 6) What is the formula to find the breakeven number of units?____________________________ 7) How can you determine...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (47,900 units @ $26.00) $1,245,400 Total variable cost 398,528 Contribution margin $ 846,872 Total fixed cost 914,056 Operating income $ (67,184) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin $ Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? $...
Mastery Problem: CVP Analysis - Constructing a Cost-Volume-Profit Chart CVP Analysis and the Contribution Margin Income...
Mastery Problem: CVP Analysis - Constructing a Cost-Volume-Profit Chart CVP Analysis and the Contribution Margin Income Statement For planning and control purposes, managers have a powerful tool known as cost-volume-profit (CVP) analysis. CVP analysis shows how revenues, expenses, and profits behave as volume changes, which helps identify problems and create solutions. In CVP analysis, costs are classified according to behavior: variable or fixed, rather than by category: product (which includes both variable and fixed) or period (which includes both variable...
Mastery Problem: CVP Analysis - Constructing a Cost-Volume-Profit Chart CVP Analysis and the Contribution Margin Income...
Mastery Problem: CVP Analysis - Constructing a Cost-Volume-Profit Chart CVP Analysis and the Contribution Margin Income Statement For planning and control purposes, managers have a powerful tool known as cost-volume-profit (CVP) analysis. CVP analysis shows how revenues, expenses, and profits behave as volume changes, which helps identify problems and create solutions. In CVP analysis, costs are classified according to behavior: variable or fixed, rather than by category: product (which includes both variable and fixed) or period (which includes both variable...
Mastery Problem: CVP and the Contribution Margin Income Statement For planning and control purposes, managers have...
Mastery Problem: CVP and the Contribution Margin Income Statement For planning and control purposes, managers have a powerful tool known as cost-volume-profit (CVP) analysis. CVP shows how revenues, expenses, and profits behave as volume changes. In CVP analysis, costs are classified according to behavior: variable or fixed. Costs are classified by behavior on the income statement in CVP analysis to arrive at operating income. This format is known as the contribution margin income statement. Complete the following table to illustrate...
Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $35...
Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $35 per unit. The company produced and sold 7,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing: Manufacturing overhead $35,000 Direct materials $10 Selling and administrative 15,000 Direct labor 2 Total $50,000 Manufacturing overhead 5 $17 Selling and administrative 5 Total $22 Required Prepare a contribution income...
Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $38...
Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $38 per unit. The company produced and sold 5,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing: Manufacturing overhead $35,000 Direct materials $10 Selling and administrative 15,000 Direct labor 2 Total $50,000 Manufacturing overhead 5 $17 Selling and administrative 5 Total $22 Required Prepare a contribution income...
E5-3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Morning Dove...
E5-3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–2,500 units, and monthly production costs for the production of 2,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 6,700 Utilities ($130...
Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last year’s income statement is as...
Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last year’s income statement is as follows: Victoria Company Contribution Margin Income Statement For the Last Year 1 Sales (29,000 units) $1,218,000.00 2 Variable cost 812,000.00 3 Total contribution margin $406,000.00 4 Fixed cost 300,000.00 5 Operating income $106,000.00 Required: 1. Compute the break-even point in units and sales dollars calculated using the break-even units. 2. What was the margin of safety for Victoria last year in sales dollars? 3....
ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of $80,000....
ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of $80,000. Determine (1) Breakeven point in sales dollars (2) Contribution margin and contribution margin ratio is 60% (3) Selling price per unit and variable cost per unit. (4) What is the margin of safety. If the fixed cost was $300,000, what would have been the contribution margin at breakeven point.