eases its selling price by 15%?” Discuss the following under CVP analysis (present graphical representations where applicable): i. The break-even graph ii. The contribution graph iii. The profit graph

Q: Which of the following is true regarding the contribution margin ratio of a single product company?…

A: 1. Contribution Margin Ratio - It is calculated by following formula - = (Total Revenue - Variable…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Hypothetical example based on the plan of XYZ Company: Effect on profit=Increase.

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: A company observed a decrease in the cost per unit. All other things being equal, which of the…

A: The production iincludes of variable and fixed costs.

Q: A company observed a decrease in the cost per unit All other things being equal, which of the…

A: SOLUTION- 1-You can reduce the unit cost of products by lowering your overhead cost per item. 2- By…

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: Using the following data, estimate the new Return on Investment if there is a 7% decrease in…

A: When a company has invested some amount of capital into the business with an intention to earn…

Q: Once sales reach the breakeven point, each additional unit sold will increase fixed cost by a…

A:

Q: The breakeven point increases if: O a. the selling price per unit increases O b. the total fixed…

A: 1) D is the correct answer Because The break-even point can increase once the number of fixed prices…

Q: 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is…

A: Break Even Sales=Fixed CostsSelling Price-Variable Cost per unit×Selling Price Margin of…

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: A company observed a decrease in the cost per unit. All other things being equal, which of the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: In response to a request from your immediate supervisor, you have prepared a CVP graphportraying the…

A: Cost-volume profit graph: Cost-volume profit graph is a graphical representation of sales, cost and…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: given that, Selling price will receive to half  Variable price per unit will constant Fixed cost…

Q: hart included in screenshot as well as prior analysis** CVP analysis is used to analyze the effects…

A: Break even point ( in units ) =  Fixed costs / Contribution margin per unit Contribution = Sales -…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: profit for any company will be sales quantity * selling price -fixed cost - variable costs.

Q: A firm presently has total sales of P100,000. If its sales rise, its fixed costs will also rise.…

A: There are two types of costing methods, one is Absorption costing and other is Variable costing.…

Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

Q: If NUBD Company decided to increase its unit selling price to offset exactly the increase in the…

A: Note: On increasing the selling price per unit to offset exactly the increase in the variable cost…

Q: Profit Planning and Sensitivity Analysis You are currently trying to decide between two…

A: 1.

Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…

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

Q: Given the following information. answer the questions:• The ratio of variable cost per unit divided…

A: (a) Draw the cost volume profit diagram:   Units Sales ($1) Variabe costs ($0.25) Fixed costs…

Q: Imagine that you could increase the price for a product that has a profit margin of 8% on its price.…

A: Suppose Sale price of the product is 100 and variable cost of product is 92 and the profit is 8. the…

Q: A firm presently has total sales of P100,000. If its sales rise, its A. net income based on…

A: In absorption costing, all costs related to the manufacturing whether fixed or variable will be…

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: For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue…

A: Profit function is the difference between Sales and cost function. P(x) = R(x) - C(x) domain of…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Answer

Q: APPLY THE CONCEPTS: Use the CVP graph to analyze the effects of changes in price and costs Graph the…

A: The level/point at which the expenses of the business organizations are equal to their revenues is…

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: APPLY THE CONCEPTS: Margin of Safety Margin of safety can allow you to see how much padding there is…

A: Break Even Point( In units) = Fixed Cost / Contribution per unit  Margin of Safety( In Units) =…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Given, Strategy: Company wants to increase the market share by Doubling the current production and…

Q: Consider two different cost structures for the same firm. The first has higher variable costs per…

A: Calculation of profit under scenario 1:  When Production = 80 units, Selling price           = 100…

Q: Encircle the followings:  Which of the following is a definition of break-even point? a) The…

A: The cost-volume-profit analysis is helpful in looking at the impact of different levels of volume…

Q: If a company increases its sales price per unit for Product A, the new breakeven point will…

A: Break even point: At break even point the revenue of the company is equivalent to the total costs…

Q: Cos-Volume-Pro fit Graph

A: In the graph, X-axis shows number of units sold and Y-axis shows amount of sales. Line A denotes…

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: a.Explain why contribution margin per unit becomes profit per unit above the break-even point b. If…

A: Let us first understand what is break even point and contribution margin Break even point is a…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

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

Q: Explain how cost-volume-profit analysis can be used to determine the number ofunits of product Y…

A: For determining the number of units Davao would have to sell to attain a 20% profit on sales: Sales…

Q: Calculate the information below and use income statement  A) PV ratio  B)profit when sales are…

A: At break even point ,  Contribution margin - fixed expenses = 0 Contribution margin - 4000 = 0…

Q: Fowler Company is a price - taker and uses target pricing. Refer to the following information:…

A: Desired Profit = $ 1,39,00,000 × 16% = $ 22,24,000

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.