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Is depreciation of sales facilities a fixed or variable expense when calculating contribution margin?
Wiki User
∙ 14y ago
According to my text book, depreciation is a Fixed cost
Wiki User
∙ 14y ago
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For income statement purposes depreciation is a variable expense if the depreciation method is?
Units-of-production
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
Is it depreciation variable cost or fixed cost?
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
Is depreciation on equipment fixed or variable?
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
How do you calculate the contribution margin for a particular product?
To calculate net profit for a venture (such as a company, division, or project), subtract all costs, including a fair share of total corporate overheads, from the gross revenues or turnover. Net profit ($) = Sales revenue ($) - Total costs ($). This is the simplest definition of profit. Another common way of counting profit is EBITDA (Earnings Before Interest Taxes, Depreciation and Amortization). This measure of profit is valuable for two reasons. It effectively isolates operating profits and it offers investors and analysts the ability to compare the performance of business with disimilar capitalization and tax structures.
How do you calculate the Contribution margin ratio?
sales-variable cost= contribution
Does contribution margin equal Sales-variable costs?
Contribution margin is computed as sales revenue minus variable expenses
Does increasing the variable cost increase the contribution margin?
Increase in variable cost reduces the contribution margin as following formula suggests”Contribution margin = Sales revenue – Variable Cost
How do you calculate unit contribution margin?
sales-variable coste= contribution margin
How do you calculate the Actual Contribution Margin?
contribution margin = sales - variable cost
Calculating inequalitys with a variable like 2W-71?
4
What is contribution margin ratio?
contribution margin ratio = (sales - variable costs) / Sales
