Contribution margin ratio is the ratio of contribution to coat of goods sold tot

Question

Contribution margin ratio is the ratio of contribution to coat of goods sold total costs total variable costs revenue A groups cost by behavior; cost are classified costs or fixed coats. constribution margin income statement absorption coating income statement balance sheet traditional income statement Constribution energies in the difference between net variable costs. True False Managers can use CVP relationships to conduct True False Fixed costs per unit decrease as production levels decrease. True Falue The amount by which sales can decrease the company operating is called breakeven point. True False Variable cost per unit is constant throughout True False The fixed costs per unit will. remain the same as production levels change decrease as production decreases increase as production increases increase as production decreases

Explanation / Answer

contribution margin ratio= contribution margin/net sales revenue D. Net Sales revenue Absorption costing income statement TRUE, Contrbution margin= Sales-variable cost True, Sensitivity analysis shows how the CVP model will change with changes in any of its variables (e.g., changes in fixed costs, variable costs, sales price, or sales mix).

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