Which of the following would not affect the breakeven point? O a. A change in variable cost per unit O b. A change in sales price per unit O C. A change in total fixed cost O d. A change in number of units sold
Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…
A: This option is False A. If only the fixed cost decreases but the number of units sold and unit…
Q: If Mazoon Company sells unit outputs below the breakeven point_ O a. total sales revenue will be…
A: The breakeven point is the production level at which the production cost equals the revenues from…
Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…
A: Margin of safety is the difference between the expected sales at the given profitability and the…
Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…
A: Margin of safety means the difference between the actual sales of the company and the Break even…
Q: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution Margin = Sales per unit - Variable cost per unit
Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…
A: If Fixed cost decreases remaining constant Break even sales automatically Break even sales reduces…
Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…
A: The Margin of Safety is the difference between the Budgeted Revenues and Breakeven Revenues.…
Q: Calculate: a) The break-even level of production and sales b) The margin of safety
A: Given in the question: Per Desk Amount Direct Materials €3.00 Direct Labour…
Q: Which of the following will result in the increasing the break-even point? O A decrease in the…
A: Break-even point = Fixed costs / Contribution per unit Contribution per unit = Selling price per…
Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin: This is the difference between sale price and variable cost per unit. This…
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: If the fixed expenses of a product increase while variable expenses and the selling price remain…
A: Break even point is the point at which the original cost equals the market price. It is where…
Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…
A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Answer
Q: Which of the following would not affect the break-even point? number of units sold…
A: Break Even Point - Break even point is the point where company has no profit no loss situation.…
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A:
Q: how would an increase in selling price per unit affect the break-even point and the margin of…
A: Break even point is the point where the entity is earning no profit and loss. Its contribution does…
Q: Which of the following formulas is used to calculate break-even point in units? a.Break-even point…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: 4. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: When the volume of production is higher than the volume of production at break-even point, than the…
A: Answer - Correct Option is Option C) current amount of profit
Q: If Mazoon Company sells unit outputs below the breakeven point O a. there will be a loss b. total…
A: break even point is a situation where the company will be in a stage of no profit and no loss. Every…
Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Margin of Safety(Amount) : Total Revenue-Breakeven point Margin of Safety(Units) : Current Sales…
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A: The break even sales units are the sales where business earns no profit no loss during the period.
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: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…
Q: Which of the following would produce no change in the contribution margin per unit? Select one: O a.…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
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: If the number of units produced decreases, which of the following is true? answer choices…
A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: Break even point is total fixed cost divided by contribution margin per unit. So break-even point…
Q: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…
A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…
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: 3. Each of the following would affect the break-even point, except a change in the a. variable costs…
A: A Break-even point is a spot where the aggregate cost and income of a business will become equal.…
Q: The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not…
A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…
Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: A dollar value increase in a product's selling price per unit accompanied by a similar dollar value…
A: Contribution Margin The Calculation of Contribution Margin Percentage which is calculated by Total…
Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: The formula for Contribution margin per unit is : =Sales Revenue per unit - Variable Cost per unit…
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: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point where unit sold gives no profit or loss to the firm. Beyond Break Even…
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: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…
A: The contribution margin represents the portion of sales that is left after the deduction of variable…
Q: Which of the following statements is not correct? All other things remaining the same A. equal…
A: The Break-even point helps the production department for calculating the level of production…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point at which firm incurred no loss and earned No Profit. Break Even Point…
Q: The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the…
A:
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: 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: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: The Break-even point is the point where all the sales generated by the company are equal to the cost…
Q: The break-even point can be calculated with the following formula: Total fixed expenses / (Variable…
A: Break-even point = Total fixed expenses / (Selling price per unit - Variable cost per unit)
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
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- 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 unitOn 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. Decrease in selling price per unit O b. None of the given answers O c. Decrease in fixed costs O d. Decrease in variable cost per unit O e. Increase in number of units soldWhich of the following conditions would cause the break-even point to decrease? a. Increase in unit variable cost b. Decrease in unit selling price c. Decrease in unit variable cost d. Increase in total fixed costs
- On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answersWhich of the following conditions would cause the break-even point to increase? Oa. total fixed costs decrease Ob. unit selling price increases Oc. total fixed costs increase Od. unit variable cost decreasesOn 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. None of the given answers O b. Increase in number of units sold O c. Decrease in variable cost per unit O d. Decrease in selling price per unit Oe. Decrease in fixed costs
- 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 constantBreak-even is the number of units at which? a. total revenue equals price times quantity b. total revenue equals total variable cost c. total revenue equals total fixed cost d. total revenue equals total costWhich 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
- How do costs behave when there is a change in volume?a) ______ increases or decreases in total in direct proportion to increases or decreases in sales volume. b) ______ remains the same in total, regardless of change in sales. c) ______ have both a variable and fixed component. d) Answer the following regarding the high-low method:i) What is the formula for determining the variable costs when using the high low method:ii) Given the following information for the high and low levels, what is the variable cost per unit and the total fixed costs? iii) Based on the information in part ii), what is the relevant range?In MyAccountingLab, complete Try It! 21-1 and S21-1 through S21-3.LO2. What is contribution margin, and how is it used to compute operating income?a) What is the contribution margin if net sales revenue is $100,000 and variable costs are $40,000? b) Based on the information in part a), what is the contribution margin ratio?In MyAccountingLab, complete Try It! 21-2 and S21-4 and…On the cost-volume-profit graph, which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged)? а. Decrease in selling price per unit O b. None of the given answers С. Decrease in number of units sold d. Decrease in variable cost per unit е. Increase in fixed costsWhich 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