Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello can u do same like yesterday.I need to rephrase the answers 1) Explain how contribution margin analysis useful for managerial decision and performance evaluation?

Hello can u do same like yesterday.I need to rephrase the answers

1) Explain how contribution margin analysis useful for managerial decision and performance evaluation?

Reporting contribution margin by segment is useful in assessing the profitability of each segment. It allows managers to analyze operations and make recommendations as to how to direct their efforts.

2 )Samsungmanagers relyon reports of variable costs. How can variable costing reportspreparedusing the contribution margin format help managers in computing break-even volume in units?

The contribution margin format income statement has the cost-volume-profit data readily available. The necessary components for CVP analysis revenues, variable expenses, contribution margin, and fixed expenses are shown on the contribution margin format income statement. 3) How can samsunguse variable costing to help better understand its operations and to make better pricing decisions?

Samsung selling prices must cover the cost of the items sold, as well as all selling and administrative expenses. Obviously, a selling price must exceed the cost of manufacturing the item. But Palm might have other variable costs related to the item, such as sales commissions. Palm can use variable costing to create a contribution margin format income statement to help managers understand how many items must be sold to break even, and how they need to price their items. Of course, with multiple products, Palms contribution margin ratio is an average over all of the products they sell.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

6th Canadian edition

013257084X, 1846589207, 978-0132570848

More Books

Students also viewed these Accounting questions

Question

Explain the factors influencing wage and salary administration.

Answered: 1 week ago

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago

Question

Relax your shoulders

Answered: 1 week ago