How is the contribution margin calculated when utilizing variable costing?
A) Sales less variable cost of goods sold
B) Sales less variable cost of goods sold, less variable selling and administrative expenses
C) Sales less cost of goods sold
D) Sales less variable cost of goods sold, less variable selling and administrative expenses, less fixed cost of goods sold, less fixed selling and administrative expenses
B
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Norwell Company purchased $1,413,200 of new business equipment on July 10, 2019. This was Norwell's only asset purchase for its 2019 taxable year. Compute Norwell's total tax depreciation deduction for this 7-year recovery property.
A. $1,413,200 B. $1,026,134 C. $201,946 D. $1,021,848
The cost of an asset is $1,000,000, and its residual value is $290,000. Estimated useful life of the asset is five years. Calculate depreciation for the first year using the double-declining-balance method of depreciation
A) $284,000 B) $400,000 C) $200,000 D) $142,000
A firm has an increase in EPS of 5%, increase in EBIT of 3%, and a degree of total leverage of 2. What is the firm's percentage change in sales?
A) 2.5% B) 1.5% C) 1.0% D) 4.2% E) Cannot be determined with the information provided.
A provision in a contract which states no damages can be recovered in the event of breach of contract is called: A) a contributory clause B) an exculpatory clause C) a waiver clause
D) a force majeur clause