1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs + Unit Contribution Margin 2. Variable Costs + Contribution Margin Percent 3. Variable Costs + Unit Contribution Margin 4. Fixed Costs + Contribution Margin Percent

1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs + Unit Contribution Margin 2. Variable Costs + Contribution Margin Percent 3. Variable Costs + Unit Contribution Margin 4. Fixed Costs + Contribution Margin Percent

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...

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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.

Question

1. Which of the following formulas is used to calculate break-even units?
1. Fixed Costs - Unit Contribution Margin
2. Variable Costs Contribution Margin Percent
3. Variable Costs + Unit Contribution Margin
4. Fixed Costs + Contribution Margin Percent

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Which of the following statements is true regarding average fixed costs? A. Average fixed costs per unit remain fixed regardless of level of activity. B. Average fixed costs per unit rise as the level of activity rises. C. Average fixed costs per unit fall as the level of activity rises. D. Average fixed costs per unit cannot be determined.
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
Which of the following graphs illustrates how total fixed costs be have with changes in total units produced
When should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable cost
When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unit
Using this information from Planters. Inc., what is the cost per unit under both variable and absorption costing?
The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference between sales and total cost. c. difference between sales and operating income. d. difference between sales and total variable cost. e. difference between variable cost and fixed cost.
The break-even point in CVP analysis is defined as the point 1) where output units equal input units. 2) where total revenue equals fixed costs. 3) where revenues less variable costs equal operating income. 4) where the unit contribution margin equals the selling price less the unit variable cost. 5) where total revenue equals total costs.
1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume volume remains within the relevant range .) a. Total variable costs. b. Variable cost per unit. Total fixed cpst . d. Fixed cost per unit. e. Total semi variable costs. f. Semi variable cost per unit .
The contribution-margin ratio is: Select one: a. unit contribution margin divided by the selling price b. the difference between the selling price and the variable cost per unit. c. unit contribution margin divided by fixed cost per unit. d. variable cost per unit divided by the selling price e. fixed cost per unit divided by variable cost per unit.
Which of the following formulas is used to calculate break-even point in units? a.Break-even point in units = Total fixed costs / (Price − Unit variable cost) b.Break-even point in units = Total costs / Unit contribution margin c.Break-even point in units = Sales / Unit variable cost d.Break-even point in units = Sales / Fixed costs
The break-even point in unitsis calculated as (fill in the blank) divided by the Contribution Margin in Units. (See your Chapter 20 notes, page 13) Total sales revenue Sales revenue per unit Total variable costs Fixed cost per unit Variable cost per unit Total fixed costs Contribution margin ratio