elearn.squ.edu.or(Academic)al Accounting || fall20All else being equal, what happens to the unit contribution margin and the contribution marginratio if the sales price per unit increases?Select one:Oa. Unit contribution margin decreases while contribution margin ratio increases.b.Both unit contribution margin and contribution margin ratio are unchanged.Oc. None of the given answers.d. Unit contribution margin increases and contribution margin ratio decreasesPe. Both unit .contribution margin and contribution margin ratio decrease.

Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…

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. Unit contribution margin decreases while contribution margin ratio increases. O b. Both unit contribution margin and contribution margin ratio are unchanged. Oc. None of the given answers. O d. Unit contribution margin increases and contribution margin ratio decreases. e. Both unit contribution margin and contribution margin ratio decrease.

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. Unit contribution margin decreases while contribution margin ratio increases. O b. Both unit contribution margin and contribution margin ratio are unchanged. Oc. None of the given answers. O d. Unit contribution margin increases and contribution margin ratio decreases. e. Both unit contribution margin and contribution margin ratio decrease.

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.10EX

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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 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.
g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases
1. Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit Contribution Margin Variable Costs ÷ Contribution Margin Percent Variable Costs ÷ Unit Contribution Margin Fixed Costs ÷ Contribution Margin Percent 2. What effect does the increase in fixed costs have on the break-even units? Decrease Increase No-effect None of these choices are correct. 3. If a company decides to increase the selling price of its product, what is its effect on break-even point? Decrease Increase No-effect None of these choices are correct.
1. The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c. variable cost per unit. d. profit per unit. e. unit contribution margin. 2. Line A is the: a. total revenue line. b. Option 2 c. fixed cost line. d. variable cost line. e. total cost line. f. profit line.
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 constant
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 statements about CVP analysis is false ? a. Total revenues and total costs are linear in relation to output units . b. Managers use (CVP ) analysis to study the behavior of and relationship among the elements such as total revenues , total costs , and income c. All of the given answers are true . d. Unit selling price , unit variable costs , and total fixed costs are known and remain constant . e. Operating income calculations in CVP analysis are based on contribution margin not gross margin .
Which of the following statements is not correct? All other things remaining the same A. equal percentage increases in both the selling price and variable cost per unit will cause the contribution margin ratio to remain unchanged B. equal peso increases in both the selling price and variable cost per unit will cause the break-even point in units to remain unchanged C. equal peso increases in both the selling price and variable cost per unit will cause the break-even point in pesos to remain unchanged D. equal percentage increases in both the selling price and variable cost per unit will cause the break-even point in sales pesos to remain unchanged
Answer the following: 1. The unit contribution margin is calculated as the difference between: a. selling price and fixed cost per unit. b. selling price and variable cost per unit. c. selling price and product cost per unit. d. fixed cost per unit and variable cost per unit. e. fixed cost per unit and product cost per unit 2. At the break-even point, the total contribution margin is: a. Zero b. Equal to total fixed costs c. Equal to total costs d. Equal to total variable costs 3. A company with a negative margin of safety also has a (an) a. Operating loss b. Operating profit c. Sales above its break-even point d. Sales equal to its break-even point 4. The break-even point is that level of activity where: a. total revenue equals total cost. b.variable cost equals fixed cost. c. total contribution margin equals the sum of variable cost plus fixed cost. d. sales revenue equals total variable cost.…
g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the break-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases