A company that desires to lower its break-even point should strive to: reduce variable costs. pursue more than one of the above actions. sell more units. decrease selling prices. increase fixed costs.
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A company that desires to lower its break-even point should strive to:
- reduce variable costs.
- pursue more than one of the above actions.
- sell more units.
- decrease selling prices.
- increase fixed costs.
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- Discuss possible strategies of the company to decrease breakeven point, Contribution margin, and increase profitability without increasing the selling price per unit.What is the major benefit of Breakeven Analysis? A. AB B. CD C. D. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and prices of your products will have on profitability. It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost.Which of the following costs are always incremental and relevant in decision analysis? a) Opportunity costs and sunk costs b) Avoidable costs and opportunity costs c) Only avoidable costs d) Avoidable costs and sunk costs Which of the following will increase a company's breakeven point? a) reducing its total fixed costs b) increasing the selling price per unit c) increasing variable cost per unit d) increasing contribution margin per unit
- Lowering price does not always increase revenue with increased demand. Besides reducing price, what else can a firm do to stimulate demand for its product?A decrease in fixed costs will increase the number of units that need to be sold in order to breakeven. Group of answer choices True FalseYou decide to increase advertising, you will not change the selling price and variable cost per unit do not change. In this scenario, your breakeven point in units will Group of answer choices: Increase decrease stay the same the answer cannot be determined from the given information
- 1. Which action would not lower a company's break-even point? O increase selling prices () reduce variable costs () decrease fixed costs ) sell more units O answer not given O O O OO“Companies should always make and sell all products whose selling prices exceed variable costs.” Assuming xed costs areirrelevant, do you agree? Explain.Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select both the correct answer to elastic, unit, or inelastic as well as what the company should do to increase revenue. Since 0Which of the following items will not cause the company's ROA to increase? Multiple Choice O O Reducing costs. Reducing company assets without impacting sales. Increasing company assets. Increasing the selling price per unit. $If fixed costs decrease, which of the following statements is most likely correct? The relevant range has changed. The contribution margin per unit will increase. The volume of sales will increase. The break-even point will increase. Variable costs will increase.When constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.SEE MORE QUESTIONS
