: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 roducing 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

: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 roducing 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

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 false: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. 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.
Which of the following is a TRUE statement about sales mix? Select one: O A. Profits will remain constant with an increase in total monetary sales if the total sales in units remains constant. OB. Profits may decline with an increase in total monetary sales if the sales mix shifts to sell more of the high contribution margin product. O C. Profits will remain constant with a decrease in total monetary sales if the sales mix also remains constant. O D. Profits may decline with an increase in total monetary sales if the sales mix shifts to sell more of the lower contribution margin product.
On the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. Increase in number of units sold O b. Decrease in variable cost per unit O c. None of the given answers O d. Decrease in fixed costs O e. Decrease in selling price per unit ion 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 ed decrease the breakeven point d out of O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for Finish Esc Fnlock FI F2 F3 F4 F8 23 & 1 2 4 7 V Q E Y F H C {V } Alt •1 + CO
CVP analysis with multiple products assumes that sales will continue at the same mix of products, expressed in either sales units or sales dollars. This assumption is essential, because a change in the product mix will probably change: Multiple Choice The average variable cost per unit. The average sales price per unit. The weighted-average contribution margin (per unit or ratio). The total fixed cost. The average contribution margin (per unit or ratio).
Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.
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
XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. However, due to high commission fees, the variable cost per unit is also expected to double. Assuming that the selling price per unit and fixed costs remain unchanged, what would be the effect on profit? O a. Profit would decrease O b. Profit would remain unchanged None of the given answers O d. Cannot be determined using the information in the question. e. Profit would increase
The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not decrease unit sales would be: a. CMR - Increase; BEP - Decrease b. CMR - Decrease; BEP - Decrease c. CMR - Increase; BEP - No effect d. CMR - Decrease; BEP - No effect
XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. At the same time, the company plans to decrease the selling price per unit by half. Assuming that the total fixed cost and the variable cost per unit remain unchanged, what would be the effect on profit? O a. Profit would increase Ob. Profit would remain unchanged Oc. None of the given answers O d. Cannot be determined using the information in the question. O e. Profit would decrease on 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 Fin n.squ.edu.om/mod/quiz/attempt.php?attempt=1893260&cmid=891193&page=3#question-2134787-30 + F1 F2 F3 F4 F6 F7 FB 23 & of 1 4 6 7 Q W E T Y G Y J K C 24 Alt R
Which of the following statements is true? OA. When a large proportion of income is spent on a product or service, the more elastic the supply will be. Percentage change in price OB Elasticity of supply Percentage change in quantity supplied OC. Products or services in which inputs are readily available have a more elastic supply. OD. None of the above is true. hand written otherwise skip
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.