7. If Total Sales were $100, Variable Expenses $45 and, Fixed Expenses $10, the

Question

7. If Total Sales were $100, Variable Expenses $45 and, Fixed Expenses $10, the Contribution Margin Ratio is? a. 53% b. 45% c. 48% d. 55% 8. In calculating Break-Even Sales Dollars, the denominator is a. The Contribution Margin per Unit b. The Contribution Margin Ratio c. The difference between the Variable Expenses % and the Contribution Margin % Contribution Margin % less the Fixed Expense % of Sales d. 9. If my company had a Degree of Operating Leverage of 4 and our Sales are projected to grow by 3% in the coming year, Net Operating Income is projected to increase by: a. b. c. d. 196 12% 7% 3% 10. The Pre-Determined Overhead Rate is calculated by a. Dividing the Estimated Manufacturing Overhead Costs by the Estimated b. Dividing the Actual Manufacturing Overhead Costs by the Actual amour c. Dividing the Actual Manufacturing Overhead Costs by the Estimated d. Dividing the Estimated Manufacturing Overhead Costs by the Actual amount of the allocation base of the allocation base amount of the allocation base amount of the allocation base.

Explanation / Answer

7.  Contribution Margin Ratio = Contribution Margin/Sales

= (Sales - Variable cost)/Sales

= ($100 - $45)/$100

= 55%

8. b. contribution margin ratio

9. if there is a 3% increase in the company's sales, its EBIT increases by 12%.

10. a Dividing the estimated manufacturing overhead costs by the estimated amount of the allocation base

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.