Which of the following formulas is used to calculate the net marketing contribution?
A) Acquisition Costs + Retention Costs
B) Volume (units) + Margin per Unit
C) Price + Variable Cost
D) Gross Profit - Marketing and Sales Expenses
E) Price - Variable Cost
D
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Indicate whether the statement is true or false
All else being equal, which of the following would cause net operating income to increase?
A) An increase in total variable costs. B) A decrease in total fixed costs. C) A decrease in sales price per unit. D) A decrease in contribution margin.
Sebree Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units)$280,000Variable expenses 168,000Contribution margin 112,000Fixed expenses 105,600Net operating income$6,400The degree of operating leverage is closest to:
A. 43.75 B. 17.50 C. 0.06 D. 0.02
Consider the equation for present value. If you wished to increase the present value of a future amount by changing only one variable, which of the following actions should you take?
A) increase the time period B) decrease the future value C) decrease the interest rate D) This statement cannot be answered with the information provided.