How would an increase in sales volume affect the break-even point and the margin of safety

Q: Break-Even Sales and Cost-Volume- Cor noin

A:

Q: The margin of safety is the excess of: O Break-even sales over expected sales. O Expected sales over…

A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…

Q: What will be Abado’s breakeven point in sales dollars  ?

A: Break even refers to the situation of no profit and no loss. At the point of break even, business is…

Q: Explain what a sales mix is and how changes in the sales mix affect the break-even point.

A: A sales mix is ratio that shows various products and services which compose the entire sales volume.…

Q: 6. What will be the impact on a company's profit if sales mix shifts between low margin and high…

A: Sales mix represents the proportion of sales of each product in relation with the total sales of the…

Q: Calculate: a) The break-even level of production and sales b) The margin of safety

A: Given in the question: Per Desk Amount Direct Materials  €3.00 Direct Labour…

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the…

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

A: The analysis for cost, volume and profit in an organization is called Cost-Volume-Profit analysis.…

Q: What is the break-even point in unit sales?

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

Q: Which of the following statements represents Margin of Safety (units)? O a. Expected sales (units)…

A: Solution: The margin of safety represent sales level that generates profits. Therefore margin of…

Q: Margin of Safety (MOS) in dollars indicates how much sales must decrease before the company will be…

A: Margin of safety is the excess of actual revenue over its break even revenue.

Q: how would an increase in selling price per unit affect the break-even point and the margin of…

A: Break even point is the point where the entity is earning no profit and loss. Its contribution does…

Q: How do you calculate the break-even point of sales?

A: Break even point of sales is the point at which there is no profit or no loss for the business.

Q: Is my explanation correct? When the shit in sales toward the lower contribution margin.  In the…

A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…

Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing.  Group of answer…

A: Introduction: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold…

Q: Is there any way to show high net operating income without increasing sales under the absorption…

A: A method of costing that involves consideration of all the manufacturing costs for calculation of…

Q: A shift from low-margin sales to high-margin sales

A: Sales are the amount which the company earns by selling the goods or providing the services during…

Q: If sales volume decreases and all other factors remain constant, then the Multiple Choice   margin…

A: Margin of safety = Sales - Break-even sales Break-even point = Fixed cost / Contribution margin…

Q: in a cost volume profit analysis explain what happen at the break even point and why company do not…

A: Cost volume profit analysis: It is a technique that analyses the effect of cost and volume on…

Q: What is the break-even sales increase? Interpret.

A: The company would be defining the sales after considering the estimated revenues. All those revenues…

Q: which one of the following will tend to increase the length of the credit period? Decrease in…

A: The length of credit period is a time duration provided to its consumer to pay back the amount of…

Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False

A: Margin of safety = Actual sales - Break-even sales

Q: volume variance

A: Sales volume variance measures the difference between the actual units sold and the budgeted units…

Q: An increase (decrease) in cost of sales due to volume of *

A: Cost of Sales Cost of sales which is described as the cost which are incurred at the time of sales…

Q: Define days sales outstanding (DSO). What can be learned from it?How is it affected by sales…

A: The average number of days in which a firm receives payments after the sale is done is a calculation…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower net…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: Lowering price does not always increase revenue with increased demand. Besides reducing price, what…

A: Reducing prices will not always stimulate demand to the desired extent especially in case of…

Q: Explain sales cutoff tests.

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Why is it common to assume a fixed sales mix before finding the break even volume with multiple…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: What is an aging schedule? What can be learned from it? How is itaffected by sales fluctuations?

A: Aging schedule is a statement which shows the time taken to recover their receivable and for…

Q: Would an increase in per-unit selling price cause a company’s break-even point to increase or…

A: The breakeven point (break-even price) for a trade or investment is determined by comparing an…

Q: How does targeted profit enter into the break-even units equation?

A: Every organisation desires to attain certain target profit.  Therefore the organisation makes an…

Q: One drawback to the weighted average method is that you might end up selling products at a loss True…

A: Weighted Average Method is a method of valuing the cost at an average value instead of their real or…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: What is the break-even point in sales units? (see attached)

A: Given:

Q: how does the sales mix affect the calculatin of the break even point, what does operating leverage…

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

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability 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: Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales…

A: Solution Given Selling price per unit 25  Less Variable cost per unit (15)…

Q: In the case of decrease the operating cash cycle, which one of the following actions should be…

A: cash flow from operating activities include normal operating of firm.

Q: What is the break-even point in sales dollars?

A: Break even point is the point in sales. That is, the level of sales which when achieved by a…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…