What best describes the following equation? Net income = (Unit contribution margin x quantity) Fixed costs.

Fantastic news! We've Found the answer you've been seeking!

Question:

What best describes the following equation? Net income = (Unit contribution margin x quantity) – Fixed costs.

A : This is a version of the net income equation that explicitly uses contribution margin ratio.

B : This is a version of the net income equation that ignores the effects of changes in quantity.

C : This is a version of the net income equation that explicitly uses unit contribution margin.

D : This is a version of the net income equation that ignores the effects of fixed costs.

Related Book For answer-question

Core Concepts Of Accounting Information Systems

ISBN: 9780470507025

11th Edition

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

See More Books

Posted Date: Feb 06, 2024 11:34 PM

See More Questions

The acceleration of point A is defined by the relation a = ? 5.4 sin kt, where a and t are expressed in ft/s2 and seconds, respectively, and k = 3 rad/s. Knowing that x = 0 and v = 1.8 ft/s when t =...
The slender rod has a mass of 10 kg and is released from rest when it is in the vertical position. Determine its angular velocity at the instant it becomes horizontal. The attached block at D has a...
It is desired to design a system for controlling the rate of extension x of the fire-truck ladder during elevation of the ladder so that the bucket B will have vertical motion only. Determine x in...
Identify each of the equations as representing either a circle, a parabola, an ellipse, a hyperbola, or none of these. (x + 1) 2 + (y + 1) 2 = 2(x + y + 1)
Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 32 days. The firm's credit sales for 2018 were $56.1 million. What is the year-end 2018 balance in accounts...
Georgia won the Massachusetts lottery, which means that she will receive $ 28,000 per year for the next 30 years. Georgia purchased the lucky ticket in March, and she was selected the winner in June....
Being a full-time accountancy student is exciting and challenging. You are aware that there are many careers within accountancy to choose from, but your interest has been in taxation. Explain to your...
On December 31, Year 1, Kelly Corporation of Toronto paid 13 million Libyan dinars (LD) for 100% of the outstanding common shares of Arkenu Company of Libya. On this date, the fair values of Arkenu's...
When considering a change, which role would be responsible for analyzing the schedule, budget, and resource allocations to determine how the change impacts the project? Explain.
A slipper-pad bearing (Fig. P1023) is often encountered in lubrication problems. Oil flows between two blocks; the upper one is stationary, and the lower one is moving in this case. The drawing is...
1. Policymakers want to reduce smoking because it leads to various serios illnesses. They can attempt to achieve this target by decreasing the demand curve for cigarettes and other tobacco products...
What role does social capital play in fostering community resilience, civic engagement, and collective action, and how can it be cultivated and leveraged to address pressing social challenges?
Alvaro and Fernanda are married and file jointly. In 2023, they sold their home in Denver and made a profit of $562,000. They owned and used the property as a principal residence for the past seven...
Explain the families of law, what those are, and how it impacts the criminal justice system of the United States. Provide source. ?
A close family friend will sell you his coffee shop for $250,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month...
We sold 10 call option contracts (recalling that one contract represents 100 shares of stock). As of today the delta is 0.6. How many shares of stock should we hold to be delta neutral? The delta for...
Design a building column made of A36 steel (fy=36 ksi) having length of 10ft using AISC table to support a dead load of 50 kips & live load of 80 kips. Assume K=0.9 & E=29,000 ksi. Use LRFD...
Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the...
In the early twentieth century, there was an ambitious young man named Arthur who started working at a company in Chicago as a mailroom clerk. He was a hard worker and very smart, eventually ending...
Managerial accounting is impacted by IT in many ways, including enhancing corporate performance measurement (CPM). How do you think a university might be able to use a scorecard or dashboard approach...
How does a data flow diagram for the sales process differ from a system flowchart describing that process?
Using the information presented in Exhibit 4, the quick ratio for SAP Group at 31 December 2017 is closest to: A . 1.00. B . 1.07. C . 1.17.
Based on Exhibit 1, the fi nancial leverage ratio for Company B is closest to: A . 0.55. B . 1.22. C . 2.22. EXHIBIT 1 Common-Size Balance Sheets for Company A, Company B, and Sector Average Company...
Based on Exhibit 1, which ratio indicates lower liquidity risk for Company A compared with Company B? A . Cash ratio. B . Quick ratio. C . Current ratio. EXHIBIT 1 Common-Size Balance Sheets for...

What best describes the following equation? Net income = (Unit contribution margin x quantity) Fixed costs.

Question:

Expert Answer:

The best answer that describes the following equation Net income Unit ... View the full answer

Core Concepts Of Accounting Information Systems

Students also viewed these accounting questions