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

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: Which of the following is correct? The break-even point occurs when: Select one: a. total variable…

A: Break even point is the point where the production level at which the production costs equal to the…

Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?…

A:

Q: The variable cost ratio is calculated as: O a. Selling price per unit - the variable cost per unit O…

A: Variable cost: It can be defined as the cost that varies or changes with a change in the activities…

Q: The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding…

A: Cost volume profit analysis - This analysis shows how a change in variable cost and change in fixed…

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: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

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: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…

Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: The break-even point is where total sales equal total variable costs. True B) False

A: Break-even point is the point at which company’s revenues which are earned during the year are equal…

Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…

A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…

Q: If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not…

A:

Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…

A: At break-even point, there is no profit or no loss.

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

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

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin ratio =Contribution per unitSales price per unit Contribution per unit = Sales…

Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

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

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.

Q: If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in…

A: Lets understand the basics. Variable cost ratio is a ratio which indicates the variable cost in…

Q: In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even.…

A: Cost-volume-profit analysis is used inorder to analyse the relation between profits of the entity…

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: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed…

A: Break Even point is a level where Profit is Zero

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: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…

A: The income is calculated as excess of revenues over expenses.

Q: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…

A:

Q: 4. Which of the following statements is correct? a. Gross margin and contribution margin are the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…

Q: Which of the following is true of the contribution margin ratio?       a.If the contribution margin…

A: The contribution margin indicates the excess of revenue over its variable cost. It also indicates…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: Which of the following would not be an acceptable way to express contribution margin? * 100% minus…

A: The correct option is fourth. As the formula of dividing variable cost by sales revenue is used for…

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

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: 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: If the total contribution margin increases and fixed costs do not change, then net income can be…

A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…

Q: Once the break-even point is reached, which of the following statements is false? Select one: O None…

A: Break-even point is the point where the total cost is equal to total sales so we can say that…

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: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin ratio=Contribution per unitSales price per unit Contribution per unit = Sales…

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…

Q: the product with the higher contribution ratio , which of the following is true ? O a Fixed cost…

A: Below option is true:-  d. the average contribution margin ratio will increase

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…