Contribution margin is: Group of answer choices Excess of sales revenue over total variable costs. Excess of sales revenue over costs of goods sold. Excess of sales revenue over variable costs of goods sold. All of the answer choices are correct.

Contribution margin is: Group of answer choices Excess of sales revenue over total variable costs. Excess of sales revenue over costs of goods sold. Excess of sales revenue over variable costs of goods sold. All of the answer choices are correct.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MCQ: The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference...

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Question

Contribution margin is:

Group of answer choices

Excess of sales revenue over total variable costs.

Excess of sales revenue over costs of goods sold.

Excess of sales revenue over variable costs of goods sold.

All of the answer choices are correct.

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Similar questions

The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference between sales and total cost. c. difference between sales and operating income. d. difference between sales and total variable cost. e. difference between variable cost and fixed cost.
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The formula for Contribution is Select one: a. Fixed cost + loss b. Sales - Variable cost c. Fixed cost - Profit d. Sales + Variable cost
Which of the following is contribution margin? Group of answer choices Excess of sales revenue over total variable costs. Excess of sales revenue over costs of goods sold. Excess of sales revenue over variable costs of goods sold. All of the answer choices are correct.
Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? Select one: a. As long as the contribution margin is a positive number, net income will be positive b. As long as variable costs are more than fixed costs, net income will be negative c. As long as the contribution margin is greater than fixed costs, net income will be positive d. As long as the sales price per unit is greater than fixed costs per unit, net income will be positive
The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
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In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following? Multiple Choice The break-even point The total fixed expenses The total variable expenses The total contribution margin
A Cost-Volume-Profit graph contains an "Area of Loss" and an "Area ofProfitability". Which of the following best explains the difference between thetwo points on the graph? A. The area of loss represents the difference between Sales and Variable Cost.B. The area of loss begins with the concept that fixed costs have to be recovered priorto sales contributing to profit.C. The area of profit represents the difference between Sales and Variable Cost.D. The area of profit begins with the concept that no company would have any level ofsales below the break-even point.
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