Question: The contribution margin ratio decreases if Multiple Choice The percentage of contribution margin to sales revenue increases. The percentage of variable cost to sales revenue

The contribution margin ratio decreases if

Multiple Choice

  • The percentage of contribution margin to sales revenue increases.

  • The percentage of variable cost to sales revenue increases.

  • The percentage of variable cost to sales revenue decreases.

  • Total fixed costs decrease.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Q1. Compute the values for (B) and (Y) in the above chart. Compute the Debt Ratio and record in the above chart. (Debt ratio = Liabilities / Assets) This ratio quantifies the proportion of assets...

Q:

The contribution margin ratio decreases if Multiple Choice The percentage of contribution margin to sales revenue increases. The percentage of variable cost to sales revenue increases. The percentage...

Q:

Assume that only the specified parameters (that is, variables) change in a sensitivity analysis. The contribution margin ratio increases when: Multiple Choice Sales volume increases. The variable...

Q:

Which of the following statements is correct about the difference between contribution margin and gross margin? Multiple Choice Contribution margin is the difference between sales revenue and cost of...

Q:

A 4 5 % contribution margin ratio means that: Multiple Choice the company should contribute 4 5 % of its operating income to qualified charities for maximum tax benefits. 5 5 % of the company's...

Q:

Texas- Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas- expects...

Q:

Assume that only the specified parameters ( that is , variables ) change in a sensitivity analysis. The contribution margin ratio increases when: Multiple Choice Total short - term fixed costs...

Q:

DeLoria Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's...

Q:

1) The contribution margin ratio is the percent of each sales dollar that remains after deducting the total unit variable cost. True or False 2) The accounting rate of return is calculated as:...

Q:

- X Data Table Welc A B 1 Westlake Coffee 2 Contribution Margin Income Statement Month Ended August 31 3 $ 100,000 $ 36,500 11,000 4 Sales revenue 5 Less variable expenses: 6 Cost of goods sold 7...

Q:

Contribution Margin Ratio Silberg Companys controller prepared the following budgeted income statement for the coming year: Sales ...............$415,000 Total variable cost .......... 282,200...

Q:

A trust is considered to be an individual for tax purposes and therefore its taxation year is the calendar year. Is this statement true? Explain.

Q:

Exhibit 17.13 presents a consolidated statement of income and retained earnings for 2013, and Exhibit 17.14 presents a consolidated balance sheet for Tuck Corporation as of December 31, 2012 and...

Q:

What country is an example of no financial reporting requirement for private companies? Multiple Choice United Kingdom Australia and New Zealand India United States

Q:

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Q:

Billy Davis has applied for a $9,000 loan to buy a pre-owned automobile. As credit manager of A-1 Finance Corporation, you learn during a credit check that Billy is behind on payments for debts on...

Q:

Why is analyzing your receiver important when planning a persuasive message? (Objective 2)

Q:

For the past year, the local city bus company stopped twice daily at the main entry of Super Mega Shopping Mart for passengers to exit or enter the bus.With the heavy traffic near this entrance, the...