Answered: What effect does an increase in sales…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5DQ

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Similar questions

Which tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?
When the level of activity decreases, variable cost will increase or decrease ?
If fixed costs increase, what would be the impact on the (a) contribution margin?
Which type of cost has an unchanging total expense and a decreasing average expense as output increases?
Which of the following is true about the changes in fixed cost? An increase in production will result in an increase in per unit fixed cost. A decrease in fixed cost will result in an increase in variable cost. An increase in production will result in a decrease in per unit fixed cost. A decrease in production will result in an increase in total fixed cost.
Which of the following describes the behavior of the fixed cost per unit? Decreases with decreasing production Decreases with increasing production Increases with increasing production Remains constant with changes in production
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Which of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing production
What is the effect of an increase in variable costs as a percentage of sales onthe contribution margin and on the break-even dollar amount?
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What is the unit volume increase ? What is the x contribution margin per unit ? what is the Increase in profitability?
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