All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases?Select one:a. None of the given answers.O b. Unit contribution margin decreases while contribution margin ratio increases.OBoth unit contribution margin and contribution margin.ratio are unchanged.Od. Both unit contribution margin and contribution manrgin ratio decrease.O e. Unit contribution margin increases and contribution margin ratio increases,

Contribution margin is the margin of profits of any enterprise which is essentially a function of…

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: O a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. Oc.Both unit contribution margin and contribution margin ratio are unchanged. O d. Both unit contribution margin and contribution margin ratio decrease. O e. Unit contribution nmargin increases and contribution margin ratio increases.

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: O a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. Oc.Both unit contribution margin and contribution margin ratio are unchanged. O d. Both unit contribution margin and contribution margin ratio decrease. O e. Unit contribution nmargin increases and contribution margin ratio increases.

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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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.
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
The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped 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
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.
Would each of the following increase, decrease, or have an indeterminant effect on a firms break-even point (unit sales)? a. The sales price increases with no change in unit costs. b. An increase in fixed costs is accompanied by a decrease in variable costs. c. Variable labor costs decline; other things are held constant.
Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the contribution margin of a composite unit can be calculated by multiplying fixed costs by the contribution margin ratio of a composite unit can only be calculated when the proportion of products sold is the same for all products can be calculated by multiplying fixed costs by the contribution margin ratio of the most common product in the sales mix
All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one: O a. None of the given answers. O b. Both unit contribution margin and contribution margin ratio increase. O c. Unit contribution margin decreases and contribution margin ratio decreases. O d. Both unit contribution margin and contribution margin ratio are unchanged. O e. Unit contribution margin increases while contribution margin ratio decreases.
All else being equal , what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease ? Select one : a . Both unit contribution margin and contribution margin ratio are unchanged . . Both unit contribution margin and contribution margin ratio increase . c . Unit contribution margin increases while contribution margin ratio decreases . d . Unit contribution margin decreases and contribution margin ratio decreases . . None of the given answers .
Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.
Which of the following is true regarding the contribution margin ratio of a company that produces only a single product? Select one: a. The contribution margin ratio equals the selling price per unit less the variable expense ratio. b. The contribution margin per unit multiplied by the selling price per unit equals the contribution margin ratio. c. None of the given answer is correct. d. As fixed expenses decrease, the contribution margin ratio increases. e. The contribution margin ratio will decline as unit sales decline.
The variable cost ratio is calculated as? .a the selling price per unit/the selling price per) contribution margin ratio - (unit B. None of the given answers .c Selling price per unit - the variable cost per unit .d The selling price per unit / variable cost per unit .e The selling price per unit ratio / variable cost per unit ratio