Chapter 5 Managerial accounting

The fixed expenses of the entire company were ___________ The break-even point for the entire company is closest to:

CM ratio = ttl Contribution margin ÷ ttl Sales Dollar sales to break even = Fixed expenses (given) ÷ CM ratio

What is total contribution margin if sales volume increases by ____%?

CM ratio: contribution margin ÷ Sales total contribution margin: C.M ratio x (1.___% x sales)

The break-even in monthly dollar sales is closest to:

CM ratio=(selling price per unit-variable expense per unit) / selling price per unit Dollar sales to break even = Fixed expenses ÷ CM ratio

The company's degree of operating leverage is closest to:

Contribution margin = Sales - Variable expenses Profit = Contribution margin - Fixed expenses Degree of operating leverage = Contribution margin ÷ profit

The company's contribution margin ratio is closest to:

Contribution margin = sales revenue - (Variable manufacturing expense+ Variable selling and administrative expense) CM ratio: C.M/ sales revenue

Based on this information, the break-even point was:

Fixed expenses = (CM ratio. x sales) +/- opposite net Dollars sales to break even= Fixed expenses ÷ CM ratio

What is the margin of safety in dollars?

Margin of safety in dollars = (current sales x selling price) - (break-even sales x selling price)

If the company sells _________ units, its net operating income should be closest to:

Selling price per unit = Sales ÷ Quantity sold Variable expenses per unit = Variable expenses ÷ Quantity sold Unit CM = Selling price per unit - Variable expenses per unit Profit = (Unit CM × given sells) - Fixed expenses

If the company sells _______ units, its total contribution margin should be closest to:

Selling price per unit = sales / (units) Variable expense per unit: variable expenses /(units) Unit CM: S.P.PU. -V.E.P.U total Contribution margin: U.CM x sells ____ units

The unit sales to attain the company's monthly target profit of __________is closest to:

Unit CM = Selling price per unit - Variable expenses per unit Unit sales to attain a target profit = (given+ Fixed expenses) ÷ Unit CM

What are the company's variable expenses per unit?

Unit CM = fixed expense / planning to sell variable expenses per unit= per unit - unit cm

Given these data, the annual fixed expenses associated with the total:

Unit Cm= sells for ______ -variable exp fixed expenses = sold (largest number) x unit cm

what is the company's unit contribution margin?

Unit contribution margin = ( Sales revenue/produced and sold) - (( variable manufacturing expense + variable selling and administrative expense) / produced and sold)

If fixed expenses totaled _______ for the year, the break-even point in unit sales was:

Variable expenses: sales rev.- fixed expenses- oper. net income CM ratio: (sales rev.-variable expense)/(sales rev) Dollars sales to break even= fixed expenses/ Cm ratio unit sales to break even: D.S.T. B. E./ per unit

what is the best estimate of the company's net operating income in a month when sales are ________?

net operating income = (CM ratio × Sales) - Fixed expenses

If the company's sales increase by ____, its net operating income should increase by about:

operating leverage × Percentage change

If the company has a target profit of ________ sales in units must be:

unit Cm=(fixed expenses/ company must sell) Unit sales to attain a target profit = (given + Fixed expenses) ÷ Unit CM