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Question(s) / Instruction(s):

54.      Gross margin is the same as contribution margin.

55.      Gross margin focuses on sales in relation to variable cost.

56.      Sales mix concept is relevant for all companies, regardless of the number of units produced.

57.     Gross margin = sales price – cost of goods sold.
58.     Contribution margin = sales price – all variable expenses.
59.     Cost of goods sold is the cost of the merchandise that a company acquires or produces and then sells.
60.     Selling expenses are found in the cost of goods sold.

61.      When changes occur in the sales mix, there is no effect on the cost volume profit relationships.

62.     Due to limited resources, sales of every type of product cannot be maximized.
63.     Sales volume of a given product helps guide executives who must decide to emphasize or deemphasize particular products.

64.      A change in the tax rate will not affect the break even point.

65.     Income before income taxes = net income / marginal tax rate.

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