CVP analysis with multiple products assumes that sales will continue at the same mix of products, expressed in either sales units or sales dollars. This assumption is essential, because a change in the product mix will probably change:   Multiple Choice   The average variable cost per unit.   The average sales price per unit.   The weighted-average contribution margin (per unit or ratio).   The total fixed cost.   The average contribution margin (per unit or ratio).

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

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

Q: On the CVP graph, the next unit sold will increase total cost by an amount equal to the Select one:…

A: CVP (Cost Volume Profit) graph shows the connection between the costs incurred in production and…

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…

Q: On the CVP graph, the next unit sold will increase total cost by an amnount equal to the Select one:…

A: CVP analysis refers to the Cost Volume Profit Analysis. In the cost volume Profit analysis the main…

Q: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an international…

A: The cost structure of two Options are given.  Required  How do volumes affect the return on equity?…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due…

Q: Which of the following is true of a company that uses absorption costing? Multiple Choice   Net…

A: Absorption costing: Under the absorption costing method, manufacturing costs such as direct material…

Q: :When performing sales mix analysis, which one of the following is true Shifting the sales mix to…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: er variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices…

A: 2:561. Break- even point in terms of Volume= FixedCosts/Contribution Margin per unitOption A =…

Q: In a multi-product company, Proportion of product sales to total sales at BEP will be equal to…

A: SOLUTION- MULTI PRODUCT COMPANY- IT WORKS BEST WHEN A CUSTOMER FOR ONE PRODUCT IS LIKELY TO BE…

Q: If a company is a multiproduct firm. a. can only utilize CVP analysis if the contribution margin…

A: c)  a multiproduct firm can earn a lower than expected profit though the total number of units sold…

Q: When performing sales mix analysis, which one of the following is true: O a. The sales mix is…

A: The sales mix is a formula that specifies how much of each product a company sells in relation to…

Q: (a) Calculate and determine the break-even points (in sales dollars and units) for each product…

A: In Marginal Costing we calculate contributionmargin by deducting…

Q: Net income will be: Greater if more higher-contribution margin units are sold than…

A: The contribution margin refers to the difference between the selling price and the variable cost. In…

Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…

A: The break-even point is that level of the unit where the company neither incurs any gain nor any…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opprtunity cost should be consider while accepting special order. As order is received at full…

Q: 1. One way management considers their costs is as average costs. Under this approach, managers can…

A:

Q: Find the breakeven point

A: Definition: Cost structure: Structure which represents specific cost business incur in particular…

Q: Due to change in market conditions a company finds that it can sell as many of each of its three…

A: The contribution margin indicates an amount which the company has to pay over its fixed cost…

Q: A. What are total variable costs for Morris with their current product mix? Total variable costs $…

A: Break even point in unit sales shows number of units to be sold to come into no profit and no loss…

Q: Which of the following is NOT an assumption of cost-volume-profit analysis?   Question 10…

A: The question is based on the concept of Cost Accounting.

Q: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…

A: Break even point = Fixed costs / Weighted average contribution margin

Q: Sometimes management prefers that the break-even point be expressed in sales dollars rather than…

A: Break-even Point - It is a point at which revenues of a company are equal to the total expense of a…

Q: In a sales mix situation, at any level of units sold, net income will be higher if   more fixed…

A: Net Income = Contribution Margin - Fixed Expenses

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: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Zachary Company reported the following data regarding the product it sells: Sales price Contribution…

A: Break even point =   Fixed cost/Contribution margin ratio

Q: On the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a.…

A: We have the following information: On the CVP graph, the next unit sold will increase sales by an…

Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…

A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…

Q: At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable…

A: CVP analysis is done to measure the effect of change in the costs or outlays of the entity on its…

Q: 1.  The difference between contribution margin and income from operations is ________. net income…

A: Fixed costs = Contribution margin - Income from operations Operating leverage = Contribution margin…

Q: NUBD Co. manufactures and sells a single product. If the selling price and variable costs both…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin…

Q: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…

A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…

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

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: When performing sales mix analysis, which one of the following is false: O a. Normally the…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: Variable costing has an advantage over absorption costing for which of the following purposes? all…

A: Under variable costing, the product cost consists of the variable cost incurred and total fixed cost…

Q: Tower Company manufactures and sells a single product with a positive contribution margin. If the…

A: Contribution margin per unit: Contribution margin per unit is the amount by which sales revenue per…

Q: When the selling division is a full capacity, the goal congruent transfer price will be the: market…

A: Transfer pricing is a pricing methodology in which product of one department will be transferred to…

Q: The break-even point in CVP analysis is defined as the point   1)  where output units equal input…

A: A Break-even point is a level of sales at which there is no profit or loss. Hence, at the break-even…

Q: Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the…

A: Transfer price is the price charged by the transferring division to another division with the same…

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