What is a key factor in determining sales mix if a company has limited resources?
What is the key factor in determining sales mix if a company has limited resources? Contribution margin per unit of limited resource.
When a company has limited resources to manufacture products it should?
Cards
| Term the method of assigning costs is essentially the same in a job order and a process cost system | Definition FALSE |
|---|---|
| Term When a company has limited resources to manufacture products, it should manufacture those products which have the highest contribution margin per unit at the product level | Definition FALSE |
•Dec 10, 2012
What is the sales mix assumption?
In cost-volume-profit analysis, we usually assume that a company's sales mix stays the same when its sales levels increase or decrease. This assumption is necessary because this means its contribution margin ratio stays the same because each product usually has its own contribution margin ratio.
How do you find the sales mix rate?
Sales mix percentage is the number of one product's sales divided by the number of total products sold….Sales mix percentage:
- Basic weight-lifting set.
- 800.
- 5,000.
- 16% (800÷5,000 = 0.16)
Dec 17, 2021
What is the key factor in determining whether a person has resilience?
It is the ability to recover from extreme or prolonged stress. What is the key factor in determining whether a person has resilience? The key factor in resilience is having the support of family and friends.
What is degree of operating leverage?
The degree of operating leverage measures how much a company's operating income changes in response to a change in sales. The DOL ratio assists analysts in determining the impact of any change in sales on company earnings.
When a company has a limited resource it should apply additional capacity of that resource to providing more units of the product or service that has?
Managerial Accounting; Test 3 (Ch 20-21); Practice
| Question | Answer |
|---|---|
| 11.) When a company has a limited resource, it should apply additional capacity of that resource to providing more units of the product or service that has: | the highest contribution margin per unit of that limited resource |
When a company has a production constraint?
When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the lowest contribution margin per unit of the constrained resource. You just studied 20 terms!
How do you determine the best product mix?
2:289:15Optimal Product Mix Calculation – YouTubeYouTube
Which method is used for selection of best sales mix?
Factoring in Profit Margin Profit margin is defined as net income divided by sales, and this ratio is a useful tool to compare the relative profitability of two products with different retail sales prices.
How can sales mix be improved?
There are a number of things you can do to improve your sales mix….Actions You Can Take
- Suggesting a high-margin add-on item with each transaction.
- Adjusting your email marketing offers and product focus to align with your desired sales mix.
- Evolving the service structure that you currently offer your clients.
What is the importance of sales mix?
The sales mix is a calculation that determines the proportion of each product a business sells relative to total sales. The sales mix is significant because some products or services may be more profitable than others, and if a company's sales mix changes, its profits also change.
What is the key factor in resilience quizlet?
The key factor in resilience is having the support of family and friends. A tendency to focus on the positive aspects of a situation. A tendency to focus on the negative aspects of a situation and to expect the worst. A person who accepts nothing less than excellence.
What are resilience factors?
The Main Factors Contributing to Resilience Having the capacity to make realistic plans. Being able to carry out those plans. Being able to effectively manage your feelings and impulses in a healthy manner. Having good communication skills. Having confidence in your strengths and abilities.
Which is better high or low operating leverage?
Generally speaking, high operating leverage is better than low operating leverage, as it allows businesses to earn large profits on each incremental sale. Having said that, companies with a low degree of operating leverage may find it easier to earn a profit when dealing with a lower level of sales.
How do you increase operating leverage?
Improving leverage In addition to setting benchmarks for when to increase operating costs, you can improve operating leverage by cutting costs in a way that doesn't impair your ability to grow. For Murray, technology, especially in the finance and accounting side, is one way to do that.
How do you find the contribution margin per unit of a limited resource?
The contribution margin is computed as the selling price per unit, minus the variable cost per unit.
Why is contribution margin important?
Contribution margin is helpful for determining how sales, variable costs, and fixed costs all influence operating profit. It gives business owners a way of assessing how various sales levels will affect profitability. It can be calculated at the unit or total level and can be expressed in dollars or as a percentage.
When a company has a product constraint the total contribution margin will be maximized by?
When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the lowest contribution margin per unit of the constrained resource.
When there is a production constraint a company should emphasize the products with?
Correct Answer: Option C) the highest contribution margin per unit of the constrained resource.
How should a company determine its optimal product mix when a limiting factor exists?
8:2121:33Contribution per Limiting Factor (Optimal Product Mix) – YouTubeYouTube
How do companies choose their sales mix?
What is sales mix? Sales mix is the proportion of sales in individual product accounts for in a company's total sales. You can find sales mix by comparing the profit earned by a specific product to the total amount of sales brought in by the company during a specific period of time.
How do you determine the optimal product mix?
1:289:15Optimal Product Mix Calculation – YouTubeYouTube
What is a key factor in resilience?
This combination of supportive relationships, adaptive skill-building, and positive experiences is the foundation of resilience. Children who do well in the face of serious hardship typically have a biological resistance to adversity and strong relationships with the important adults in their family and community.
What are the 5 resilience factors?
I discussed the five factors that are important to develop resilience: connection to others, communication, confidence, competence and commitment, and control.
What 3 types of factors affect resilience?
The Main Factors Contributing to Resilience Other factors that contribute to resiliency include: Having the capacity to make realistic plans. Being able to carry out those plans. Being able to effectively manage your feelings and impulses in a healthy manner.
Why does operating leverage decrease as sales increase?
Because retailers sell a large volume of items and pay upfront for each unit sold, COGS increases as sales increase. Because of this, such stores often have low operating leverage.
How do you maximize operating leverage?
Improving leverage In addition to setting benchmarks for when to increase operating costs, you can improve operating leverage by cutting costs in a way that doesn't impair your ability to grow. For Murray, technology, especially in the finance and accounting side, is one way to do that.
What is the best way to reduce operating leverage?
Answer and Explanation: The best way to reduce operating leverage is to: b. substitute direct labor for automated equipment.
Which operating leverage is best?
Generally speaking, high operating leverage is better than low operating leverage, as it allows businesses to earn large profits on each incremental sale. Having said that, companies with a low degree of operating leverage may find it easier to earn a profit when dealing with a lower level of sales.