In a multi-product company, as the mix of the products being sold changes, the overall contribution margin ratio will also change. If the shift in mix is toward the less profitable products, then the contribution margin ratio will * fall rise O not change O change in direct proportion to break-even point
Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…
A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…
Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…
A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…
Q: A company that desires to lower its break-even point should strive to: reduce variable costs.…
A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…
Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…
A: Contribution margin:
Q: :When performing sales mix analysis, which one of the following is true Shifting the sales mix to…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: In the CVP analysis, at the point of breakeven O a. total contribution margin minus total fixed…
A: The break even sales units are the sales where business earns no profit no loss.
Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…
A: The contribution margin decides which product gives more profits to the company. The contribution is…
Q: The firm with the largest ratio of fixed costs to total costs automatically gets the greatest…
A: Lets understand the basics. Fixed cost is a cost which is fixed over a period of time. It includes…
Q: Would an increase in variable costs per unit cause a company’s break-even point to increase or…
A: Variable cost is an amount that changes in total in proportion to the volume produced and sold…
Q: When performing sales mix analysis, which one of the following is true: O a. The sales mix is…
A: The sales mix is a formula that specifies how much of each product a company sells in relation to…
Q: Two companies have identical fixed expenses, unit variable expenses, and profits. Yet one company…
A: Contribution margin income statement is an income statement in which all the variable expenses are…
Q: Is my explanation correct? When the shit in sales toward the lower contribution margin. In the…
A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…
Q: Net income will be: Greater if more higher-contribution margin units are sold than…
A: The contribution margin refers to the difference between the selling price and the variable cost. In…
Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…
A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…
Q: When performing sales mix analysis, which one of the following is false: Oa. Producing and selling…
A: Breakeven sales is that point of sales revenue at which business is covering its fixed costs and…
Q: Under the contribution income statement, a company's contribution margin will be lower if? Fixed…
A: A break-even point is a point where the company incurs no loss and no profit. The contribution…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will…
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Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…
A: Contribution margin is referred to as that portion of sales revenue which is not absorbed by the…
Q: What will happen to a company’s break-even point if the sales price and unit variable cost of its…
A: Break-even point: It can be defined as the level of production at which the revenue from selling the…
Q: In all respects, Company A and Company B are identical except that Company A’s costs are mostly…
A:
Q: Two companies have identical fixed expenses, unit variable expenses, and profits. Yet one company…
A:
Q: If a company increases its fixed cost for product B, then the contribution margin per unit will…
A: Fixed cost is that cost which remains constant at particular level of…
Q: If Mazoon Company sells unit outputs that exceed the breakeven point there will be a profit .a total…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Due to change in market conditions a company finds that it can sell as many of each of its three…
A: The contribution margin indicates an amount which the company has to pay over its fixed cost…
Q: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…
A: The income is calculated as excess of revenues over expenses.
Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…
A: The graphical representation of the cost-volume benefit analysis is a cost volume profit graph, also…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
Q: operating leverage factor t
A: Operating leverage factor = (Sales - Variable costs)/(Sales - Variable costs) - Fixed costs
Q: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…
A: Contribution margin per unit is the amount remaining with the entity on selling each unit of product…
Q: Compared to companies that have a cost structure that is mainly comprised of fixed costs, companies…
A: Operating income shows that how revenue leads to growth in operating income. It is a tool to measure…
Q: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…
A: Break even point = Fixed costs / Weighted average contribution margin
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…
A: Option c is the answer.
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit
Q: NUBD Co. manufactures and sells a single product. If the selling price and variable costs both…
A: we know that, Fixed cost in total will remain the same and fixed cost per unit will change as per…
Q: The break-even point in a given situation would be decreased by an increase in a. the CM ratio. b.…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: A company's break-even point will not be changed by:
A: Break-even point i Break-even point is a level of activity where no profit is gained and no loss…
Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…
A: Breakeven quantity increases with the following changes: Increase in amount of fixed costs,…
Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…
A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…
Q: If the percentage change in operating income resulting from a given percentagechange in sales is…
A: Operating Leverage is the % change in EBIT to the % change in sales. It shows how much the EBIT…
Q: NUBD Co. manufactures and sells a single product. If the selling price and variable costs both…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin…
Q: A company's break-even point will not be increased by: an increase in the variable cost per…
A: Break-Even Point = Fixed Cost / (Selling Price per unit - Variable Cost per unit)
Q: Net income will be: O Greater if more higher-contribution margin units are sold than…
A: In a product mix, the product having higher contribution margin should be sold more as contribution…
Q: If the proportions of different products in a sales mix change, Contribution margin per unit…
A: Answer: 2. False change in sales mix directly impact the break -even point
Q: When performing sales mix analysis, which one of the following is false: O a. Normally the…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do…
A: Break-even point: It is that point in the business when all its costs have been recovered.…
Q: the product with the higher contribution ratio , which of the following is true ? O a Fixed cost…
A: Below option is true:- d. the average contribution margin ratio will increase
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- Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. O b. any increase in quantity sold. С. any increase in variable cost per unit O d. any decrease in the selling price per unit e. increase in its total fixed costsWhich of the following is true regarding the contribution margin ratio of a company that produces only a single product? Select one: a. The contribution margin ratio equals the selling price per unit less the variable expense ratio. b. The contribution margin per unit multiplied by the selling price per unit equals the contribution margin ratio. c. None of the given answer is correct. d. As fixed expenses decrease, the contribution margin ratio increases. e. The contribution margin ratio will decline as unit sales decline.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
- Which of the following is true regarding the contribution margin ratio of a company that produces onlya single producct? Select one: O a. As fixed expenses decrease, the contribution margin ratio is unaffected. Ob.The contribution margin ratio equals the selling price per unit less the variable expense ratio. O c The contribution margin ratio divided by the selling price per unit equals the contribution margin per unit. Od. None of the given answer is correct. Oe. The contribution margin ratio will decline as unit sales decline.If a company is a multiproduct firm. a. can only utilize CVP analysis if the contribution margin percentages on each product are the same. b. should use a separate CVP graph for each of its products. c. could earn a lower-than-expected profit even though the total number of units sold was greater than expected. d. cannot utilize CVP analysis.Which of the following is not an assumption of break-even analysis? a. A company is operating within its relevant range of activity. b. All costs are either variable or fixed. c. Revenues and variable costs are constant per unit. d. Contribution margin is the difference between selling price and total cost per unit. e. Fixed cost per unit decreases as volume increases.
- If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in total fixed costs b. total sales revenue will exceed total variable costs total sales revenue will exceed total fixed costs dthere will be a profit e None of the given answersEach of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the lower contribution ratio, which of the ?following is false .the average contribution margin ratio will decrease .a O .all of the answers are true b O .the breakeven point will decrease .c O Fixed cost will be constant d O .operating income will decrease .e OEach of a company's two product lines has a different contribution margin ratio . If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase
- If a company increases its fixed costs for Product B, then the contribution margin per unit will increase. decrease. remain the same. More information needed.On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the line representing total costs (variable costs and fixed costs). False True1. The difference between contribution margin and income from operations is ________. net income variable costs fixed costs None of these choices are correct. 2. The relationship between a company’s contribution margin and income from operations is measured by _____. contribution margin operating leverage margin of safety break-even point 3. The __________ is the relative distribution of sales among the products sold by a company. sales mix mixed cost product mix None of these choices are correct. 4. The unit selling price of the overall enterprise product equals the ________. average selling price of the products price of the highest-selling product in the mix sum of the unit selling prices of each product multiplied by its sales mix percentage price of the product having the lowest selling price