Chapter 5 MA Management Accounting
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Chapter 5 MA Management Accounting
Chapter 5 MA Management Accounting
Chapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is the Chapter 5 MA Management Accounting e ratio of the total contribution margin to total sales revenue. It is used in target profit and break-even analysis and can be used to quickly estimate the effect on profits of a change in sales revenue.5-2 Incremental analysis focuses on the changes in revenues and costs that will result from a pa Chapter 5 MA Management Accounting rticular action.5-3 All other things equal, Company B, with its higher fixed costs and lower variable costs, will have a higher contribution margin raChapter 5 MA Management Accounting
tio than Company A. Therefore, it will tend to realize a larger increase in contribution margin and in profits when sales increase.5-4 Operating leverChapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is the Chapter 5 MA Management Accounting omputed by dividing the contribution margin at that level of sales by the net operating income at that level of sales.5-5 The break-even point IS the level of sales at which profits are zero.45052(a) If the selling price decreased, then the total revenue line would rise less steeply, and thebreak-ev Chapter 5 MA Management Accounting en point would occur at a higher unit volume, (b) If the fixed cost increased, then both the fixed cost line and the total cost line would shift upwarChapter 5 MA Management Accounting
d and the break-even point would occur at a higher unit volume, (c) If the variable cost increased, then the total cost line would rise more steeply aChapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is the Chapter 5 MA Management Accounting olume of sales. It IS the amount by which sales can drop before losses begin to be incurred.5-8 The sales mix is the relative proportions in which a company's products are sold. The usual assumption in cost-volume-profit analysis is that the sales mix will not change.5-9 A higher break-even point an Chapter 5 MA Management Accounting d a lower net operating income could result if the sales mix shifted from high contribution margin products to low contribution margin products. SuchChapter 5 MA Management Accounting
a shift would cause the average contribution margin ratio in the company to decline, resulting in less total contribution margin for a given amount ofChapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is the Chapter 5 MA Management Accounting d be required to cover the same amount of fixed costs.Exercise 5-1 (20 minutes)1.The new income statement would be:45047Chapter 5 Cost-Volume-Profit RelationshipsTotalPer UnitSales (8,050 units) Variable expenses Contribution margin Fixed expenses Net operating income209,3$26.00 144,90018.00 64,400$ Chapter 5 MA Management Accounting 8.00 56,000 $ 8,400You can get the same net operating income using the following approach.Original net operating income8Change in contribution margin4Chapter 5 MA Management Accounting
00(50 units X $8.00 per unit)New net operating income8,42.The new income statement would be:Total Per UnitSales (7,950 units) Variable expenses ContriChapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is the Chapter 5 MA Management Accounting the following approach.Original net operating income8Change in contribution margin-400(-50 units X $8.00 per unit)New net operating income7,645048Chaptei 5 Cost-Voluuie-Piofit RelationshipsExercise 5-1 (continued) Chapter 5 MA Management Accounting Chapter 5 Cost-Volume-Profit RelationshipsChapter 5Cost-Volume-Profit RelationshipsSolutions to Questions5-1 The contribution margin (CM) ratio is theGọi ngay
Chat zalo
Facebook