Which action has a greater effect on the unit contribution margin : (1) Increasing the unit selling
Question:
(1) Increasing the unit selling price by 10% or
(2) Reducing the unit variable cost by 10%?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (21 reviews)
Unit contribution margin equals unit selling price less unit var...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Question Posted:
Students also viewed these Managerial Accounting questions
-
Which do you think has a greater effect on the consumer price index: a 10 percent increase in the price of chicken or a 10 percent increase in the price of caviar? Why?
-
Jack purchased a share one year ago for $9.12, and it is now worth $11.86. The share paid a dividend of $1.74 during the year. What was the share's income rate of return during the year? (as a...
-
The text suggests that comparing the unit contribution margin of a sports car with an entry-level vehicle is like comparing apples and oranges, but that comparing the contribution margin ratios is a...
-
A fast-food chain randomly attaches coupons for prizes to the packages used to serve french fries. Most of the coupons say Play again, but a few are winners. Seventy-five percent of the coupons pay...
-
Determine how many grams of each of the following solutes would be needed to make 2.50 x 102 mL of a 0.100 M solution: (a) Cesium iodide (CsI), (b) Sulfuric acid (H2SO4), (c) Sodium carbonate...
-
In a stunt being filmed for a movie, a sports car overtakes a truck towing a ramp, drives up and off the ramp, soars into the air, and then lands on top of a flat trailer being towed by a second...
-
Identify all the cyclic subgraphs of Graph \(C\). Use Graphs \(A, B\), and \(C\). Graph A Graph B Graph C
-
A custom furniture company made credit sales of $840,000 in 20X1 to 100 customers: Ferrara, $5,000; Cerruti, $7,000; others, $828,000. Total collections during 20X1 were $760,000 including $5,000...
-
2. In this case I'm trying to put together a rate of change of increase of honeybee numbers between the hive workers and foragers between April and May. The domain is 0-60 days in which the hive will...
-
On June 2, 2014, Betty Rice opened Bettys Art Studio in Toronto. The following transactions occurred in June: Required a. The ledger is already set up for you based on the Chart of Accounts. b....
-
What are the assumptions underlying CVP analysis?
-
In an article in the Wall Street Journal, you read that a firm reported a contribution margin equal to 40% of revenues and profit before taxes equal to 15% of revenues. If fixed costs were $200,000,...
-
Jethro Turnbull Ltd is a privately owned business. It has budgeted for profits (after deducting depreciation of 35,000) of 125,000. Debtors are expected to increase by 20,000, inventory is planned to...
-
In the month of June, a department had 23000 units in beginning work in process inventory that were 60% complete. During June.. 87000 units were transferred into production from another department....
-
Assume the following: Actual Variable Overhead$17,000Allocated Variable Overhead$18,000Budgeted Variable Overhead$17,500VOH Spending Variance Variance$1500 FVOH Efficiency Variance$500 U Prepare the...
-
The before-tax income for Sage Co. for 2025 was $102,000 and $72,700 for 2026. However, the accountant noted that the following errors had been made: 1. 2. 3. Sales for 2025 included amounts of...
-
In April, the vice president of sales of Petro Products asks the controller to prepare responsibility report for the performance evaluation of the manager of its Division Y, which is organized into...
-
Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $23,545 and it will be...
-
Think about a recent presentation you attended that you found effective. In three to five paragraphs, describe why it was effective. Include the following aspects in your analysis, referring to...
-
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
-
Name the four different types of substantive procedures discussed.
-
What assumption is implicitly made about cost behavior when a budget is directly compared to actual results? Why is this assumption questionable?
-
What assumption is implicitly made about cost behavior when all of the items in a budget are adjusted in proportion to a change in activity? Why is this assumption questionable?
-
What assumption is implicitly made about cost behavior when all of the items in a budget are adjusted in proportion to a change in activity? Why is this assumption questionable?
-
Question 4 In QuickBooks Online, what 4 pieces of information do you need to set up sales tax for a client who only does business in their home state? How often they have to file a tax return Whether...
-
In the current year, Kebby Corporation is deemed to be a personal holding company ( PHC ) and reports the following results: View the results. Read the requirements. Requirement a . What is Kebby's...
-
Information on Kwon Manufacturing's activities for its first month of operations follows: a . Purchased $ 1 0 1 , 4 0 0 of raw materials on credit. b . Materials requisitions show the following...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App