:Holding other factors constant, a company's contribution margin per unit will increase with All answers given are NOT correct .a O any increase in variable cost per unit b C .any increase in quantity sold .c O any increase in the selling price per unit .d O increase in its total fixed costs .e O

:Holding other factors constant, a company's contribution margin per unit will increase with All answers given are NOT correct .a O any increase in variable cost per unit b C .any increase in quantity sold .c O any increase in the selling price per unit .d O increase in its total fixed costs .e O

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...

See similar textbooks

Related questions

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: Before a company reaches the breakeven point Select one: a. The fixed cost is equal to zero b. The…

A: Contribution is calculated as Sales less variable costs. Sale price is the price at which the…

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: 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: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…

A: Contribution margin: This is the difference between sale price and variable cost per unit. This…

Q: All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a…

A: Contribution margin is the excess of selling price per unit over variable cost per unit.

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: Answer

Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…

A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…

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: :Holding other factors constant, a company's contribution margin per unit will increase with All…

A: The contribution margin represents the portion of sales that is left after the deduction of variable…

Q: company's total sales remain same but the sales mix shifts toward selling more of the product with…

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

Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…

A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: Before a company reaches the breakeven point Select one: O a. The variable cost is decreasing O b.…

A: Break even point is the point where there is no profit and no loss.

Q: 4. When the contribution margin per unit increases assuming all other factors remain constant. The…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

Q: If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in…

A: CVP investigation takes a goose at the impact of deals volume minor departure from prices and…

Q: If Mazoon Company sells unit outputs below the breakeven point O a. there will be a loss b. total…

A: break even point is a situation where the company will be in a stage of no profit and no loss. Every…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…

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: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…

A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…

Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will…

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: Contribution margin is referred to as that portion of sales revenue which is not absorbed by the…

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: If a company increases its fixed cost for product B, then the contribution margin per unit will…

A: Fixed cost is that cost which remains constant at particular level of…

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: Which of the following would produce no change in the contribution margin per unit? Select one: O a.…

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

Q: If Mazoon Company sells unit outputs that exceed the breakeven point there will be a profit .a total…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a…

A: An increase in sales and variable cost with the same value decreases the contribution margin ratio…

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

A: Sales:-It is the grand total sales obtained by adding and subtracting all related discounts and…

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

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: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…

A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…

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

Q: The contribution margin ratio always increases when (you may select more thanone answer):a. Sales…

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

Q: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…

A: Contribution margin per unit is the amount remaining with the entity on selling each unit of product…

Q: If total fixed costs increase, while selling price per unit and variable cost per unit remain the…

A: Break even point = fixed cost / ( sales price per unit -variable cost per unit if fixed cost…

Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…

A: The formula for Contribution margin per unit is : =Sales Revenue per unit - Variable Cost per unit…

Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…

A: Option c is the answer.

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: The break-even point in a given situation would be decreased by an increase in a. the CM ratio. b.…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: On the costvolume - profit graph which of the following would result into a decrease in the…

A: Answer

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: The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

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: Before a company reaches the breakeven point Select one: O a. The fixed cost is equual to zero O b.…

A: Breakeven point is the benchmark for any organization where it is in the position of no profit and…

Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…

A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…

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: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…

A: Contribution margin per unit is the value that can be determined by reducing the variable costs from…

Question

:Holding other factors constant, a company's contribution margin per unit will increase with
All answers given are NOT correct
.a O
any increase in variable cost per unit .b O
.any increase in quantity sold
.c O
any increase in the selling price per unit .d O
increase in its total fixed costs
.e O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When sales price increases and all other variables are held constant, the break-even point will A. remain unchanged _________________________. B. increase C. decrease D. produce a lower contribution margin
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
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
When sales price decreases and all other variables are held constant, the break-even point will _______________________. A. remain unchanged B. increase C. decrease D. produce a higher contribution margin
When should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable cost
When fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
When variable costs increase and all other variables remain unchanged, the break-even point will ____________________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
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.
Suppose you are analyzing a firm that is successfully executing a strategy that differentiates its products from those of its competitors. Because of this strategy, you project that next year the firm will generate 6.0% revenue growth from price increases and 3.0% revenue growth from sales volume increases. Assume that the firms production cost structure involves strictly variable costs. (That is, the cost to produce each unit of product remains the same.) Should you project that the firms gross profit will increase next year? If you project that the gross profit will increase, is the increase a result of volume growth, price growth, or both? Should you project that the firms gross profit margin (gross profit divided by sales) will increase next year? If you project that the gross profit margin will increase, is the increase a result of volume growth, price growth, or both?
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.
If the percentage change in operating income resulting from a given percentagechange in sales is higher than the percentage change in sales itself, thena. an increase in the selling price would not alter the contribution marginper unit.b. variable costs per unit have increased.c. variable costs have decreased in total.d. the company has operating leverage.e. the company has no fixed costs.
Each of a company's two product lines has a different contribution margin ratio . If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase