Calculate contribution to sales ratio, Cost Accounting

Assignment Help:

Q. Calculate contribution to sales ratio?

Contribution per unit= sales price per unit less variable cost per unit

Break-even volume = Fixed overhead/Contribution per unit

The number of units you will need to sell in order to earn enough contribution to cover fixed overhead for example the number of units sold where contribution would equal fixed overhead.

The contribution to sales ratio (C/S ratio)

Contribution to sales (or C/S) ratio (also known as the profit-volume or P/V ratio) would calculate how much contribution a product will earn for every £1 of sales generated, expressed as a decimal or percentage. For illustration a 0.4 or 40% C/S ratio, would mean 40 pence of contribution is earned for each £1 of sales generated.

C/S ratio= Contribution per unit/Sales price per unit

C/S ratio= Total contribution/Total sales revenue


Related Discussions:- Calculate contribution to sales ratio

Calculate the tax base of the interest received, Prepare answers to each of...

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Determine the original budget line , The state legislature has voted to dev...

The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has a

Explain the respective roles of the securities, Explain the respective role...

Explain the respective roles of the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) in the setting of accounting standards?

Overhead variance, The following information is for the third quarter of th...

The following information is for the third quarter of this year: Planned Actual Production 92,000 units 87,000 units Direct labor hours 506,800 DL hrs 380,000 DL hrs Fixed manuf

How many coupon bonds would you need to issue, 1. Suppose your company need...

1. Suppose your company needs to raise $30 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 8 percent, and you're

The average cost of production, Distinguish between,     (i)  short-run ...

Distinguish between,     (i)  short-run variable costs & long-run variable costs, and give an example of each one;   (ii)  the marginal cost &  the average cost of production

Determine the incremental cost, Determine the Incremental Cost A compa...

Determine the Incremental Cost A company currently makes a component that has the given unit cost structure Direct Material Shs. 100

Describe the concept of full cost recovery with illustrative, Describe the ...

Describe the concept of full cost recovery with illustrative examples.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd