business business

Anonymous
timer Asked: Jun 28th, 2018
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Question description

1.What is meant by a product's contribution margin ratio? How is this ratio useful in planning business operations?

2.What is meant by the term operating leverage?

3.What is meant by the term break-even point?

4.What is meant by the margin of safety?

5.Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.

100 words each

no references

Tutor Answer

proffesomathe
School: UC Berkeley

Attached.

Running Head: BUSINESS DISCUSSION QUESTIONS

Business Discussion questions
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BUSINESS DISCUSSION QUESTIONS

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Business Discussion questions
Prompt 1
Product’s contribution margin ratio is the percentage of revenues, prices or sales that
cannot be altered after recovering all the variable expenses and cost. The resulting margin ratio
and rate cannot be included directly in the external report that the company makes. Importance
for this is that it helps the company to know the margin left to cover all the variable expenses and
costs. Also, it assists the company to realize maximum profits and ensure it maintains that profit
margin. Moreover, it enlightens the compan...

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Anonymous
Outstanding Job!!!!

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