Managerial Accounting chapter 6 - Managerial Accounting Acct 2301 Chapter 6 Practice Problems 1 The total contribution margin is the difference between

Managerial Accounting chapter 6 - Managerial Accounting...

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Managerial Accounting Acct 2301 Chapter 6 Practice Problems 1.The total contribution margin is the difference between: a.Sales and variable expenses.b.Revenues and cost of goods sold.c.Sales and fixed expenses.d.The selling price and fixed cost per unit.e.Total expenses and fixed expenses. 2.The contribution margin ratio is used in the formula for: 3.If the variable costs per unit decrease, then:Contribution MarginBreak-even point 4.The Smokey Co. produces and sells barbecue grills to retailers for $65 per grill. The variablecosts per grill are as follows:Direct materials$18.00Direct labor12.00Variable overhead10.00Variable selling expenses5.00Fixed manufacturing costs total $100,000 per year. Administrative costs (all fixed) total $20,000. What is the volume in units necessary for Smokey to break even?
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