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11. What are considered direct costs in segment analyses?
12. What is cost volume profit analysis?
13. What is the break-even point?
15. What is the difference between the contribution margin ratioand the margin of safety ratio?
In a sales mix situation, at any level of units sold, net income will be higher if
a.more higher contribution margin units are sold than lower contribution margin units.
b.more lower contribution margin units are sold than higher contribution margin units.
c.more fixed expenses are incurred.
d.weighted-average unit contribution margin decreases.
Exercise 19-2 In the month of June, Jose Hebertâs Beauty Salon gave 3,800 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $16,500 and variable costs were 75% of sales. Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. 5.25 & 10.50.) Contribution margin $ Contribution margin per unit $ Contribution margin ratio % LINK TO TEXT Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,225.) Break-even point $ Break-even point units LINK TO TEXT Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.) Margin of safety $ Margin of safety ratio %
