In cost-volume-profit analysis, what is the estimated profit at the break-even point?

Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A.…

A: There are two type of costs being incurred in business. One is fixed costs and other is variable…

Q: when total contribution margin equals total fixed cost this indicates operating income

A: The contribution margin is described as that amount which is computed after reducing variable costs…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…

A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…

Q: when total contribution margin equals total fixed cost this indicates operating income true false

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…

A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: A graphic depiction of the break-even point is known as a cost-volume-profit (CVP) chart whereby the…

A: The representation of break even point in graphical form is said to be cost volume profit analysis.

Q: What is the break-even point in unit sales?

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Will the profit calculated on the absorption cost basis be higher or lower than the profit…

A: The key difference in profit under marginal costing and absorption costing technique comes because…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Contribution margin is equal to [A] fixed cost - loss [B] profit + variable cost [C] sales - fixed…

A:

Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the…

A: The difference in in economic cost value model and accountant cost value model is:- accountant argue…

Q: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…

A: Break Even Analysis: It is  the point  where  total cost is equal to  revenue  and It  determine the…

Q: Give an example of how, under absorption costing, operating income could fall even though the unit…

A: Definition:   Absorption Costing: The absorption costing is a method used to allocate the fixed…

Q: How does the contribution margin affect the cost-volume-profit analysis?

A: Cost Volume Profit analysis means the breakeven analysis which generally used to determine the break…

Q: The term 'break even' point is defined as when: A. fixed costs equal total revenues B. variable…

A: The formula for calculating the break even point in units: Break Even Point (in Units)=Fixed…

Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: When volume of production decreases fixed cost per unit will

A: We know: Fixed Cost remains constant at all levels of production.   Fixed cost per unit = Fixed Cost…

Q: How is cost-volume-profit analysis useful?

A:

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: In a profit diagram, the safety margin can either be expressed in kronor or some form of volume.…

A: Margin of safety is a financial metric which represents the number of units beyond the break-even…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: 1. Explain why a contribution margin per unit becomes profit per unit above the breakeven point.

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The “plus” in cost-plus pricing is often referred to as Markup.   Extra profit.   Gross profit.…

A: Cost plus pricing means when selling price is fixed as a addition of profit on the cost price. For…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…

A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: The break-even level of sales represents the point where:   fixed costs, variable costs, and…

A: Break even level of sales indicates the level where total sales are equal to total cost i.e total of…

Q: How does targeted profit enter into the break-even units equation?

A: Every organisation desires to attain certain target profit.  Therefore the organisation makes an…

Q: Which of the following describes the behavior of the fixed cost per unit?             Decreases…

A: Fixed cost is the cost that remains constant irrespective of the level of production. Whereas…

Q: Please explain this statement thoroughly.  "To estimate what the profit will be at various levels…

A: The point at which an entity is at no profit no loss situation, that point is the point of…

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: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis?

A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…