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Here's an example - If a company knows that a product costs a certain amount (wholesale) that's a fixed cost. Now, they usually mark up that price three times before they sell it to you. Their fixed cost ratio is 1/3. If they mark it up five times the cost, their ratio is 1/5.
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∙ 15y ago
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Give reason water is a compound and not a mixture?
A compound is defined by a substance in which the elements that it is made of are in a fixed ratio. In this case the ratio between the hydrogen and oxygen in 2:1. A mixture is a substance in which the elements that make it are not in a fixed ratio
A fixed supply means?
A supply such as office paper that has a fixed cost.
What Two or more atoms of the same or different elements make up a?
compound when they are in a fixed ratio.If it is not a fixed ratio it is a mixture
If the volume goes up what happens to the fixed cost and profit?
what effect does an increase in volume have on fixed cost per unit
When two or more different atom combine together in a fixed ratio they produce?
molecules
How do calculate break even point?
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
Is indirect material is fixed cost or variable cost?
Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.
What is V ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
What is p v ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
How do you do the calculation for the break even point?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
Calculation of break-even point?
Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = (Sales - Variable Cost) / Sales
How do you calculate the break even point for EBIT?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
What is the breakeven of a fixed cost equal 300000 the price per unit equals 10 and the variable cost per unit equals 7?
Fixed cost = 300000 Contribution margin ratio = (sales - variable cost) / sales Contribution margin ratio = (10 - 7 ) / 10 Contribution margin ratio = .3 breakeven point = 300000 / .3 = 1000000
If unit sales are 12 variable costs are 7.20 per unit and fixed costs are 24000 what is the contribution ratio per unit?
The contribution ratio of units is calculated as the unit sales minus the sales cost, then divided by the unit sales. In this case, the ratio is 40 percent. Contribution Ratio does not care about the fixed cost whatsoever.
What is a fixed ratio?
a ratio that was at first incorrect but has been fixed
Formula for break-even point?
Total fixed costs / selling price - variable cost/unit Break even points (in units) = Total fixed cost/CMPU Break even points (in Rs) = Total fixed cost/CM Ratio
What is the formula of marginal costing?
sale-variable cost=(contribution)-fixed cost =(profit):this is the statement of marginal cost. (profit volume ratio)p/v ratio=contribution÷sales x 100 mos(margin of safety)=actual sales-break even point(BEP)sales. mos(margin of safety)units=actual sales(units)-break even point(BEP)sales.(units) BEP(rs)=fixed cost ÷ pv ratio BEP(units)=fixed cost ÷ contribution per units required sales(rs)=fixed cost+desired profit ÷ pv ratio required sales(units)=fixed cost+desired profit ÷ contribution per unit . ( there is different formula for..when 2yr profit & sales are given) (
