1. Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write an "X" on the appropriate column. Effects in Gross Profit Favorable Unfavorable A. Volume - Increase - Decrease B. Selling Price – Increase - Decrease C. Unit Cost - Increase - Decrease
Q: Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…
A: The gross profit method is the one wherein the amount of inventory is measured using the gross…
Q: On a multiple-step income statement, the excess of net sales over the cost of merchandise sold is…
A: Net sale is the amount of revenue that has been earned by the an entity after deducting returns and…
Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…
A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…
Q: Gross profit is disclosed on an income statement prepared using O a) Variable costing. O b)…
A: Gross profit is disclosed on an income statement prepared using Direct Costing method.... Option C…
Q: Which method results in a more realistic amount for income because it matches the most current costs…
A: The current costs is based on the purchasing of the latest products which means the having book…
Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…
A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…
Q: Cost-to-retail ratio under the cost method is calculated: A. After both markups (net) and markdowns…
A: Both markups and markdowns is used to calculate the ratio.
Q: ending inventory increases therefore net income under AC and VC will be same Select one: True False
A: The income statement can be prepared using various approaches as contribution margin or absorption…
Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…
A: The profit volume ratio is also known as contribution margin ratio.
Q: P/V Ratio is an indicator of [A] the rate at which goods are sold [B] the volume of sales [C] the…
A: P/V ratio also known as profit volume ratio is a ratio that determines the amount of profit attained…
Q: The percentage of profit obtained from the sale of a certain product within a period is called …….…
A: Company makes sales of its products for the purpose of profit. For example, goods costing $10,000…
Q: Gross profit is the difference between: Select one: a. revenues and expenses. b. net income and…
A: Gross profit is the company's profit after deducting the unit cost of goods from sales. Gross profit…
Q: Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales…
A: Gross profit calculated as a percentage of costs is calculated as gross profit divided by the cost…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…
Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…
A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…
Q: Calculate the profitability ratio which includes gross profit margin, operating profit margin, net…
A: Profitability Ratio: It measures the ability of company to generate profit from its operations or…
Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…
A: Solution- (A) P(o) represents the amount of annual profit allocated when x=0 or when no money was…
Q: 1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using the following cost flow…
A: Date Particulars Input Quantity output Qty Unit cost…
Q: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of…
A: Contribution Margin = Sales Price - Variable Costs Variable Cost of Goods Sold as a Percent of Sales…
Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…
A: A graphical representation of the relationship between production costs and total sales is shown by…
Q: On a traditional income statement, sales revenue less cost of goods sold equals Question 26…
A: The income statement is prepared to find net income or losses incurred during the period.
Q: (D) Find the marginal revenue. (E) Find R' (3,000) and R'(6,000) and interpret these quantities. (F)…
A: Marginal Revenue refers to the extra revenue an organization will make on each extra sale. On the…
Q: Which of the following does not represent a cost-volume-profit analysis equation? Profit…
A: Cost-Volume profit Analysis:- It is a method of cost accounting which look for the impact of cost…
Q: Complete the following table by filling in the missing amounts: Mark-up on Cost Price Profit Selling…
A: In the context of the given question, we should consider the table to compute the missing amounts in…
Q: The increase (decrease) in gross profit due to change in overall quantity sold is:
A: As the student has asked specific question so we are answering that question only.
Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…
A:
Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…
A: Gross income is direct income of a business generated from direct revenues of the company. It is an…
Q: The sales price for a product provides a gross profit of 14% of sales price. What is the gross…
A: Gross profit: It can be defined as the excess of a company's sales revenue over the direct expenses…
Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…
A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…
Q: Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit…
A: Cost of goods sold means cost incurred on goods or cost of goods that are being offered for sale to…
Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…
A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…
Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…
A: Cost volume profit analysis - generally cost volume profit analysis is used to determine the…
Q: In the cost-volume- profit graph (above), what is represented by the point marked "A"?…
A: Introduction Cost volume profit (CVP) In CVP analysis if cost is equal to the sales then there is…
Q: Consider the following: Code: A = Gross profit to net sales ratio B = Gross profit to cost of…
A:
Q: mula for Gross Margin ratio? Seleccione una: a. Cost of Sales / Gross Revenues b. Revenues / Gross…
A: Gross margin ratio is one of indicator of the profitability of company and depends on the total…
Q: Sales revenue min a. gross margin income from c b. C. cost of goods d. net sales
A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…
Q: et cost = Selling price - ______________. a. Cost b. Profit margin c. Revenue d. Expenses
A: Solution: Target cost = Selling price - profit margin. This is because target cost is the estimated…
Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
Q: A component of operating efficiency and profitability, calculated by expressing net profit as a…
A: Profit is the amount earned by an entity after deducting all the outlays from the revenues.
Q: Are all the relationships below correct? Sales is equal to Production (no change in inventory) No…
A: "Since you have asked multiple sub part question we will solve the first three sub part question for…
Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…
A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…
Q: Calculate gross profit percentage and return on sales ratio
A: The formula to calculate the given ratios are:
Q: Which of the following statements correctly complete the sentence: "Gross Margin equals": I.…
A: Sales revenue less cost of goods manufactured is wrong because as per accrual concept, equivalent…
Q: Which of the following does not represent a cost -volume -profit analysis equation a. Sales = totale…
A: lets assume , Sales = 1000 less Variable cost = 200 Contribution = 800 less - Fixed cost = 100…
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- The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)1. Given this information, what is the profit percent? Format your answer to two decimal places and add a %-sign (i.e. 4.52%) Net Sales $561,800 Cost of Goods Sold 275,280 Expenses 253,936 2. Given this information, what is the profit dollars? Round your answer to the dollar and add a dollar sign and comma separator (i.e. $15,467) Net Sales $561,800 Cost of Goods Sold 275,280 Expenses 253,936 3. Given the information below, what is the profit dollars? Round your answer to the dollar and add a dollar sign and comma separator (i.e. $15,467) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,140 4. Given the information below, what is the profit percent? Round your answer to two decimal places and add a percent sign (i.e. 15.37%) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,140 5. Given the information below, what are…Complete a profit-and-loss statement: (Round dollar values to nearest dollar; show percents correct to 2 decimal places). Make sure to include all 5 components of a profit- and-loss statement in the order and show both $ and %. $4 Net Sales $178,000 A = COGS $87,932 B = Gross Margin C = D = Expenses $81,880 E = Profit F = G =
- Assume Marigold Company has the following reported amounts: Sales revenue $ 500,000, Sales returns and allowances $ 21,000, Cost of goods sold $ 325,000, and Operating expenses $ 75,000. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit $ (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rateCalculate the missing information based on the format of the income statement. Operating Еxpenses Cost of Gross Net Sales Net Profit ($) Margin ($) Goods Sold $332,500 $132,100 $107,000Assume Carla Vista Company has the following reported amounts: Sales revenue $1,489,000, Sales returns and allowances $44,000. Cost of goods sold $955,145, and Operating expenses $321,200. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit $ (c) Compute income from operations. Income from operations $ (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %
- Cont of pictures: Calculate gross profit rate under each of the following methods 1. LIFO 2. FIFO 3. Average-cost (Round answers to 1 decimal place, e.g. 51.2%)In a common-sized income statement, 100% is the a. net cost of goods sold b. gross profit c. sales d. net incomeDetermining gross profitDuring the current year, merchandise is sold for $31,850,000. The cost ofthe merchandise sold is $24,206,000. a. What is the amount of the gross profit?b. Compute the gross profit percentage (gross profit divided by sales).c. Will the income statement necessarily report o net income? Explain.
- 1. Prepare the income statement using the single-step format and the balance sheet using the account form. 2. Insert the missing figures in the income statement above. Note that the Gross Profit is 40% of Net Sales and Profit is 10% of Net Sales.Directions: Below is the summarized financial information of Redz Company. Compute the following. Write your answers on a separate sheet of paper. 1. Average Inventory Average Receivable Average Payable Inventory Turnover Ratio Days of Inventories Receivables Turnover Ratio Days of Receivable Payables Turnover Ratio 2. 3. 4. 3. 6. 785 7. 8. 9. Days of Payable 10. Operating Cycle Beginnine. Php 2.000,000.00 Php 1,150.000.00 Php 300.000,00 Php 10,000,0000,00 Php 6,5 00.000.00 Ending Php 3.100,000.00 Php 2.000,000.00 Php 18 00.000.00 Accounts Inventory Accournts Receivable Accouits Paynble Net Sales Cost of CGoods9 SoldCalculate the missing information based on the format of the income statement. Cost of Gross Operating Expenses Net Sales Goods Sold Margin ($) Net Profit ($) $336,500 $132,200 $4 $109,000