If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), does the breakeven point increase or decrease? Using Break Even Analysis, provide a unique mathematical example to support you

If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), does the breakeven point increase or decrease? Using Break Even Analysis, provide a unique mathematical example to support you

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10MC: When sales price increases and all other variables are held constant, the break-even point will A....

See similar textbooks

Related questions

Q: St. George, Incorporated

A: St. Georges net book income before tax $711,800 Installment sale gain (50.12% × $62,000)…

Q: A building owned by Cake Corporation had suffered impairment in value, and an impairment loss of…

A: Impairment of an asset If the carrying value of an asset is more than the recoverable value then…

Q: Lemon Zester Company's Balance Sheet for December 31, 2019 and the Income Statement for 2020 are…

A: The cash flow statement is part of the financial statements and is prepared to track the cash flow…

Q: The financial information below presents operating revenue and expenses for 2020 as well as the…

A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…

Q: Journalize the following transactions for Lake's Seats. Explanations are not required. (Click the…

Q: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. 2.…

A: The variances are required to be computed only and the actual as well as the standard cost is also…

Q: For journal entries 1 through 10, identify the explanation that mostly closely describes it. A. To…

A: Under accrual basis of accounting revenues are recognized when earned and expenses are recorded when…

Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list…

A: To determine the amount to be capitalized in the asset account for the purchase of the front-end…

Q: Using the following information: a. Beginning cash balance on March 1, $82,000. b. Cash receipts…

A: A cash budget is a financial planning tool that helps businesses forecast their cash inflows and…

Q: O $3,74 $3,120 $4,54

A: Answer : Office supplies purchased : Ending supplies balance $680 Add : Office supplies…

Q: A machine acquired for £480,000 on 1st May 2018 and depreciated at 10% per annum using the…

A: Given information, The machine was purchased on 1st May 2018 Find the depreciation for 4 years until…

Q: Access the FASB’s Codification Research System® at the FASB website (www.fasb.org) and select Basic…

A: Answer for the each of the following items:

Q: 12 One category of costs is described as "a cost that is specifically traceable to the segment being…

A: Cost is an expenditure that is incurred to manufacture and sell products and services.It is…

Q: Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers and other…

A: Determination of the amount and character of gain or loss recognized as a result of this theft:_

Q: the estimated amount of depreciation on equipment for a period is $3,500, the adjusting entry to…

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

Q: If the net operating income is $10,000, the gross margin is $40,000, and the cost of goods sold is…

A: The cost of products sold is the sales cost that solely includes direct costs. It indicates that the…

Q: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: O…

A: Solution: Direct manufacturing cost is the cost of direct materials and direct labor. manufacturing…

Q: QUESTION 22 Which of the following are reasons to generate a pro forma cash budget on a monthly…

A: Correct option with proper explanation are as follows

Q: Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease…

A: To record the lease agreement: Jan 1, 2020 Right-of-use asset $80,347.46 Lease liability…

Q: Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $ 5. During…

A: Units produced :— It is the number of units of finished goods completed during the period. Units…

Q: Arcs and triangles paid an annual dividend of $1.47 a share last month. The company is planning on…

A: calculation of market price of the share

Q: What NET reduction in retained earnings would result from this property dividend?

A: Answer: To determine the net reduction in retained earnings resulting from the property dividend, we…

Q: The shareholder’s equity section of FED, Inc. contains the following: Preference share capital of…

A: The treasury stock decreases the total shareholders' equity of the business. The retired shares…

Q: Quinn is an employee of Caribbean Imports. Quinn’s company car is a 2022 Toyota Prius LXE with a…

A: Fair value is defined as the value which each item fetches when it is traded in the marketplace. It…

Q: Lucas writes a check to Paige for $250. The face of the check says, "pay to the order of Paige."…

A: Negotiable instruments are financial instruments that can be transferred from one person to another…

Q: Walbin Corporation uses the weighted-average method in its process costing system. The beginning…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: Assume that a company's budgeted revenue per unit is $50. The company's planned level of activity…

A: Revenue variance is difference between the actual revenue and the flexible revenue. If the actual…

Q: rials costs ersion costs Cost $ 5,200 $ 8,500 rials costs ersion costs f 7,800 units were started…

A: Equivalent units of production are based on whole units and their percentage of completion. Cost per…

Q: Job 3 was ordered by a customer on September 2. During the month of September. FCC Corporation…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: The following events apply to Gulf Seafood for the Year 1 fiscal year: The company started when it…

A: Depreciation means allocation of cost of asset over it's useful life. Under straight line method,…

Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…

A: calculation of fixed manufacturing overhead cost included in the company ending inventory and…

Q: 5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten…

A: Depreciation is used to record expenses of asset over the period of useful life of asset.…

Q: During its first year of operation, K Corporation had a gross profit from operations of $180,000…

A: Since K Corporation owns 4.5% of the stock of the dividend-paying corporation, it is entitled to a…

Q: 1. Billy sells stock for $25,000 on August 30, 2021. Billy's adjusted basis is the stock is $18,000.…

A: When a capital asset is sold, the value of the asset increases, and this is referred to as a capital…

Q: Information on Grixdale Partner's fixed overhead costs follows: Overhead applied Actual overhead…

A: Fixed overhead costs are the type of costs that remain fixed throughout all the levels of production…

Q: DETAILS DR CR Cash 32,900 Land and Building 350,000 Provision for…

A: Financial Statements: Financial statements are official records of a person, business, or other…

Q: Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in…

A: Tax accounting for rental properties refers to the set of rules and regulations related to the…

Q: 1. The amount of total stockholders’ equity to be reported will be

A: Answer: To prepare the consolidated balance sheet of P Corporation and S Company, we need to add the…

Q: Firm UT sold realty to an unrelated buyer for $40,000 cash plus the buyer’s assumption of a $166,700…

A: Calculation of UT’s gain recognized on the sale and UT’s after-tax cash flow from thesale re…

Q: Problem 4-28A (Algo) Preparing schedule of cost of goods sold and multistep and single-step income…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Gomez is considering a $190,000 investment with the following net cash flows. Gomez requires a 9%…

A: Net present value is technique used to evaluate capital budgeting projects. Net present value is…

Q: What is the accounting term for this type of acquisition?

A: Answer: When a company purchases a building and land together for a lump sum amount, the purchase…

Q: Accounts payable $281,700 Prepaid insurance $6,800 Property and equipment 672,500 Contributed…

A: The accounting equation is the most basic and crucial concept in accounting which deals with the…

Q: 16 Hurawalhi Company uses machine-hours (MHS) to allocate their manufacturing overhead (MOH) cost…

A: Calculation of Estimated MHs For planned production last year are as follows.

Q: Four independent situations are described below. Each involves future deductible amounts and/or…

A: The deferred tax liability arises when there is a line item in the balance sheet on which income…

Q: he following selected transactions apply to Topeca Supply for November and December, Year 1.…

A: Accounting equation is one of the fundamental concept being used in accounting. Three elements of…

Q: Jim Goodman an employee at Walgreens, earned $45,000, an increase of 17.5% over the previous year.…

A: Solution: Jim earning in current year = $45,000 % increase in earnings over previous year = 17.5%

Q: Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's…

A: Net Income $104,400 Less: Increase in Accounts Receivables $(800) Add: Decrease in Inventory…

Q: Natalie is busy est for

A: As all the answers are correct, except the cost of goods sold under Average cost method. So, i have…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Answer and Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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 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
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
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 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 increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unit
1. If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), Using Break Even Analysis, provide a unique mathematical example to support the break even point decreasing
Which of the following would lead to the breakeven point of a product shifting to the left on a traditional breakeven chart? A An increase in the selling price per unit B An increase in the variable costs of each unit C An increase in the level of fixed costs D A decrease in the selling price per unit
Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.
Which of the following conditions would cause the break-even point to decrease? a. Increase in unit variable cost b. Decrease in unit selling price c. Decrease in unit variable cost d. Increase in total fixed costs
The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin per unit decreases c.none of the given answers d. the selling price per unit increases . e. the total fixed costs increase
The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding costs and selling price. Which one of the following is NOT one of those assumptions: a. The selling price per unit will remain unchanged. b. Fixed costs per unit will decrease. c. The costs can be expressed as straight lines in a BEP (Break-even-point) graph. d. The actual variable costs per unit vary over the production range.