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Q: Must be subtracted from sales to reach the contribution margin?
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How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


How do you find contribution margin percentage?

Formula for contribution margin ratio = Sales


What is contribution margin ratio?

contribution margin ratio = (sales - variable costs) / Sales


Contribution margin format?

Contribution Margin = Sales - Variable Cost Sales Less:Variable Cost Contribution Margin Less:Fixed Cost Net profit(Loss)


How do you calculate the breakeven point?

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - 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


How do you calculate contribution margin rate?

Formula for contribution margin ratio = Sales – Variable cost / Sales


How do calculate break even point?

Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales


Does contribution margin equal Sales-variable costs?

Contribution margin is computed as sales revenue minus variable expenses


How do the formulas differ for contribution margin per unit and contribution margin ratio?

Contribution margin per unit = Contribution margin / number of units of products Contribution margin ratio = Contribution margin / Net sales The formula is different for both situations because contribution margin per unit calculates the contribution margin for one unit of product while contribution margin ratio calculates the contribution margin for total overall sales as overall sales may be included different mix of products with diff rent fixed and variable costs that's why both of these are calculated separately


How do you determine the activity and dollar sales at the break even point?

The activity level at the break even point = fixed expenses/unit contribution margin Dollar sales at the break even point = fixed expenses/contribution margin ratio contribution margin ratio = contribution margin/sales