Contribution/Sales Ratio – NBC Institute

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

Question

A company budgets to sell 55,000 units of its products at N40 per unit for a variable cost of N15. If the fixed cost for the period is expected to be N340,000, then the contribution/sales ratio is:

A. 60.5
B. 61.5
C. 62.5
D. 63.5
E. 64.5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contribution margin, Contribution/Sales Ratio, Fixed Cost, Sales, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2016

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

Question

a) Cost-Volume-Profit (CVP) analysis is a way to find out how changes in variable and fixed costs affect a firm’s profit. Companies can use CVP to assess the impact on profit taking into consideration some assumptions.

Required:
State FIVE (5) assumptions underlying Cost-Volume-Profit Analysis. (5 marks)

b) The following data has been extracted from the operating records of Sharp Production Ltd:

Year	Costs (GH¢)	Profit (GH¢)
2019	402,000	54,000
2020	510,000	90,000

Required: i) Calculate the contribution/sales ratio for the company. (5 marks) ii) Compute the total fixed costs per annum. (5 marks) iii) Compute the sales value required to breakeven. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Breakeven Analysis, Budget Manual, Contribution/Sales Ratio, CVP Analysis, Fixed Costs, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

Question

A company budgets to sell 55,000 units of its products at N40 per unit for a variable cost of N15. If the fixed cost for the period is expected to be N340,000, then the contribution/sales ratio is:

A. 60.5
B. 61.5
C. 62.5
D. 63.5
E. 64.5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contribution margin, Contribution/Sales Ratio, Fixed Cost, Sales, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2016

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

Question

Required:
State FIVE (5) assumptions underlying Cost-Volume-Profit Analysis. (5 marks)

b) The following data has been extracted from the operating records of Sharp Production Ltd:

Year	Costs (GH¢)	Profit (GH¢)
2019	402,000	54,000
2020	510,000	90,000

Required: i) Calculate the contribution/sales ratio for the company. (5 marks) ii) Compute the total fixed costs per annum. (5 marks) iii) Compute the sales value required to breakeven. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Breakeven Analysis, Budget Manual, Contribution/Sales Ratio, CVP Analysis, Fixed Costs, Flexed Budget
Level: Level 1

Topic: Budgeting
Series: NOV 2021

Question Tag: Contribution/Sales Ratio

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Contribution/Sales Ratio

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

You're reporting an error for "MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis"

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

You're reporting an error for "IMAC – NOV 2021 – L1 – Q1 – Budgeting"

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

You're reporting an error for "MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis"

IMAC – NOV 2021 – L1 – Q1 – Budgeting

CVP analysis with calculation of contribution/sales ratio, total fixed costs, and breakeven sales value. Preparation of a flexed budget and identification of budget manual rules.

You're reporting an error for "IMAC – NOV 2021 – L1 – Q1 – Budgeting"

Our offerings

Contact Info

Customer

Get In Touch

admin