Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Explain why?
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Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Explain why?
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- Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Why?Explain why an increase in variable costs per unit could cause a company’s break-even point to increaseWhich of the following occurs if a company experiences a decrease in its fixed costs? Select one: a. More than one of the answers would occur. b. The break-even point would increase. c. The break-even point would decrease. d. The contribution margin would decrease. e. Income would decrease.
- the link between short-run average costs and long-run average costs? Explain the association between return to scale and economies of scale and suggest the potential sources of internal and external economies of scale. Why might firms face diseconomies of scale and shutdown/break-even situations in the long run?Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O a. Income would decrease. O b. The break-even point would decrease. O c. The break-even point would increase. O d. More than one of the answers would occur. e. The contribution margin would decrease.Would an increase in per-unit selling price cause a company’s break-even point to increase or decrease? Why?
- A company's break-even point will not be changed by: a change in the selling price per unit. a change in the income tax rate. a change in the variable cost per unit. a change in total fixed costs.Which of the following is not an assumption of break-even analysis? a. A company is operating within its relevant range of activity. b. All costs are either variable or fixed. c. Revenues and variable costs are constant per unit. d. Contribution margin is the difference between selling price and total cost per unit. e. Fixed cost per unit decreases as volume increases.In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point.
- What effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?Why do firms not have sunk costs over time? How should managers approach sunk costs when deciding whether to enter a market or remain in it?If a firm's current revenues are less than its current variable costs. Explain.
