Asked by Jenifer Lalnunkimi on Apr 30, 2024
Verified
Determine the missing amounts. Unit Selling Price Unit Variable Unit Contribution Contribution Costs Margin Margin Ratio 1. $300$165 A. B. 2. $600 C. $150 D. 3. E. F. $44040%\begin{array}{ccccc}&\text { Unit Selling Price } & \text { Unit Variable } & \text { Unit Contribution } & \text { Contribution } \\&& \text { Costs } & \text { Margin } & \text { Margin Ratio }\\\hline \text { 1. } & \$ 300 & \$ 165 & \text { A. } & \text { B. } \\\text { 2. } & \$ 600 & \text { C. } & \$ 150 & \text { D. } \\\text { 3. } & \text { E. } & \text { F. } & \$ 440 & 40 \%\end{array} 1. 2. 3. Unit Selling Price $300$600 E. Unit Variable Costs $165 C. F. Unit Contribution Margin A. $150$440 Contribution Margin Ratio B. D. 40%
Unit Selling Price
The price at which a single unit of a product is sold to customers, not including any additional fees or taxes.
Variable Costs
Expenditures that fluctuate in alignment with production levels or sales figures.
Contribution Margin
The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue is contributing to fixed costs and profit.
- Comprehend and examine the impact of cost variations on the break-even point.
- Determine and explicate the significance of contribution margin, gaining an understanding of its importance in CVP analysis.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A. $300 - $165 = $135
B. $135 ÷ $300 = 45%
C. $600 - $150 = $450
D. $150 ÷ $600 = 25%
E. $440 ÷ 40% = $1100
F. If 40% = CM ratio then 60% = variable cost percentage; $1100 × 60% = $660
Or $1100 - $440 = $660
B. $135 ÷ $300 = 45%
C. $600 - $150 = $450
D. $150 ÷ $600 = 25%
E. $440 ÷ 40% = $1100
F. If 40% = CM ratio then 60% = variable cost percentage; $1100 × 60% = $660
Or $1100 - $440 = $660
Learning Objectives
- Comprehend and examine the impact of cost variations on the break-even point.
- Determine and explicate the significance of contribution margin, gaining an understanding of its importance in CVP analysis.