When performing sales mix analysis, which one of the following is false: Oa. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point Ob. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin O c. Making changes to the sales mix will likely cause a change in the breakeven point O d. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. O e. The sales mix is usually assumed to be remain the same.

When performing sales mix analysis, which one of the following is false: Oa. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point Ob. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin O c. Making changes to the sales mix will likely cause a change in the breakeven point O d. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. O e. The sales mix is usually assumed to be remain the same.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...

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When performing sales mix analysis, which one of the following is true: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product. O c. The sales mix is usually assumed to change. O d. Making changes to the sales mix will likely cause no change in the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin DUS PAGE NEXT PAGE F8 F9 F10 F11 F4 F5 F6 F7 F1 F2 F3 * @ 2# % & 1 2 3 6 7 W E T Y F J K A 1. C {V }BYN í M 41 * N
:When performing sales mix analysis, which one of the following is true Shifting the sales mix to the product with a lower contribution margin will likely increase the overall .a O contribution margin Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single b O product Making changes to the sales mix will likely cause no change in the breakeven point .c O Producing and selling more units of the product with a higher contribution margin would likely decrease .d O the breakeven point The sales mix is usually assumed to change .e O
When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually assumed to change .b Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point .C Making changes to the sales mix will likely cause no change in the breakeven point .d Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product .e Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin أخل اختیاری
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constant
If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-even point will ____________________________________ . A. remain unchanged because all products are included in the calculation of break-even B. increase because the low contribution margin products have little effect on break-even C. increase because the per composite unit contribution margin will decrease D. decrease because the per composite unit contribution margin will increase
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Selling price per unit does not change with volume b. Costs can be divided into variable and fixed components C. Fixed cost per unit is not constant d. Sales mix of products sold does not change O e. Costs are nonlinear
Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changes
Which of the following would lead to the breakeven point of a product shifting to the left on a traditional breakeven chart? A An increase in the selling price per unit B An increase in the variable costs of each unit C An increase in the level of fixed costs D A decrease in the selling price per unit
What is false about cost plus mark-up pricing? a. attempts to apply or allocate fix costs to pricing strategy b. not intuitive c. good example of value-based pricing d. vulnerable to bad sales estimates e. All are correct f. All are incorrect
Which of the following is not an assumption underlying cost-volume-profit analysis? a.The break-even point will be passed during the period. b.Total sales and total costs can be represented by straight lines. c.Costs can be accurately divided into fixed and variable components. d.The sales mix is constant.
Which of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.
Which of the following statements about margin of safety is false? O a. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. Ob. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety decreases. O c. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O d. none of the given answers is false. O e. Margin of safety measures the difference between budgeted revenues and breakeven revenues. OUS PAGE NEXT PAGE F9 F10 F4 F5 F7 F3 F1 & @ 23 7 8 A 1 2 4 W E T Y K S DEF 1G yH ĭ J 1. C { V BYN í M