If the company produces no output, it must pay No cost (A A small amount of variable cost Its fixed cost Its owners a normal profit (D B
Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…
A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…
Q: Which of the following is true if a company can accept a special order without affecting its regular…
A: The following is true if a company can accept a special order without affecting its regular sales…
Q: If Mazoon Company sells unit outputs below the breakeven point_ O a. total sales revenue will be…
A: The breakeven point is the production level at which the production cost equals the revenues from…
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: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: 1.2.Choose TRUE or FALSE? Give short explaination? a. In marginal costing method, factory rent is…
A: In Marginal costing method, factory rent is absorbed into cost of production: FALSE Justification:…
Q: If a company had a pure fixed cost structure, every dollar of revenue after covering the fixed costs…
A: Step 1 In the pure fixed cost structure, the variable cost does not exist; only fixed cost hit the…
Q: Fixed costs normally will not include * property taxes direct labor supervisory salaries…
A: Following are the answers to the given questions
Q: All other things the same, which of the following would be true of the contribution margin and…
A: The contribution margin is the part of sales revenue that remained after deducting the variable cost…
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: Which of these costs is considered as the most important cost because if it is not met, an…
A: A company income statement will report the net income as the total revenue in excess of the total…
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: When the volume of production is higher than the volume of production at break-even point, than the…
A: Answer - Correct Option is Option C) current amount of profit
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: The break-even point is that level of activity where a. total contribution margin equals the sum of…
A: At break-even point, there is no profit or no loss.
Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
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: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…
A: Transfer price refers to the price which is used by the related parties to charge one another. For…
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: What other issues must the company consider in deciding whether to accept the business?
A:
Q: Which of the following would reduce net profit margin but have no effect on gross profit margin? a)…
A: a) Commission paid to salesmen is a selling expense charged against net profit .b) Purchase price…
Q: if costs are two high: Select one: a. Company loses work b. Company loses money C. It means error in…
A: Costs denote the amount that a company spends on the creation or production of goods and services.
Q: Which of the following is true regarding the contribution margin ratio of a company that produces…
A: Contribution margin is one of the important terms under the Cost Volume Profit analysis.Contribution…
Q: “A company should not allocate costs that are fixed in the short run to customers.” Do you agree?…
A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…
Q: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Cost-Volume-Profit graph contains an "Area of Loss" and an "Area of Profitability". Which of the…
A: Meaning of Cost Volume-profit graph Cost Volume profit graph is also shortly called as CVP graph. It…
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: Compared to companies that have a cost structure that is mainly comprised of fixed costs, companies…
A: Operating income shows that how revenue leads to growth in operating income. It is a tool to measure…
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: True (t) or False (f) ______ Use of LIFO provides a tax benefit in an industry where unit costs…
A: Income = Sales - Cost of goods sold Under the LIFO method, the cost of goods sold includes the…
Q: The break-even level of sales represents the point where: fixed costs, variable costs, and…
A: Break even level of sales indicates the level where total sales are equal to total cost i.e total of…
Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.
A: Solution:- Explaining of meaning of (a) differential revenue, (b) differential cost, and (c)…
Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…
A: The contribution margin represents the portion of sales that is left after the deduction of variable…
Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…
A: Formula: Break even point = Fixed cost / Contribution margin. Contribution margin means deduction of…
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: If a firm changes its activity level * all costs should change variable costs should change…
A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…
Q: :Holding other factors constant, a company's contribution margin per unit will increase with All…
A:
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: Which of the following is true regarding the contribution margin ratio of a company that produces…
A: Contribution margin ratio=Contribution per unitSales price per unit Contribution per unit = Sales…
Q: Help4
A: Break-even point for a business is that position for a business where the difference between the…
Q: Which of the following do not increase or decrease when the volume of production changes? O a. Fixed…
A: Some cost do not get affected by the volume of production. It remains same at all the levels of…
Q: Compared to companies that have a cost structure that is mainly comprised of variable costs,…
A: Ans. Mostly companies incur two types of cost - Variable cost or fixed cost. Variable cost changes…
Q: a. What amount of joint product cost would be allocate to each product? b. What is financial…
A: Lets understand the basics. For allocating joint process cost, there are various methods are…
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- 7 If you know that: Fixed cost = AED 3000 Variable cost= AED 500 Quantity= 100 units price= AED 10 What is the amount of: 1- Total costs? 2- Average total costs? 3- Total revenue? What are possible three market conditions in which the invisible hand is not working and there is a dead weight loss (lost economic surplus) in the market?24i. It is simple to apply.ii. It causes unit production costs to fluctuate in the opposite direction with the production volume.iii. It causes inconsistencies in period profits. Which of the following is or are the drawbacks of the full cost method?a)i and iii B)i and ii NS)only ii D)only i TO)ii and iii35. As production increases within the relevant range, Group of answer choices a. None of the statements is true. b. fixed costs will vary in total. c. variable costs will vary on a per unit basis. d. fixed costs will vary on a per unit basis.
- Q43 Historical cost accounting system results in more profits on paper that leads to various consequences of over statement of profits as more taxes and hence more bonus will be demanded by the employees etc. a. Both the mentioned points are neither a merit nor a demerit of HCA b. None of the given options are correct c. The above mentioned point is a demerit of HCA d. The above mentioned point is a merit of HCA1. What type of cost includes product ingredients and materials? a. fixed c. total b. revenue d. variable 2. What type of cost includes the rental of space? a. fixed c. total b. revenue d. variable 3. What type of cost is the product of the price and the quantity sold? a. fixed c. total b. revenue d. variable 4. What concept is being described when the business will neither earn a profit nor suffer a loss? a. break-even c. profit b. loss d. summit 5. What type of analysis shows equal revenue and total cost? a. break-even c. profit-loss b. cost of variable d. volume of sales Read the selection for questions 6-10. Junedyl is planning to run a coffee shop where he plans to sell each cup of coffee at 50.00. The ₱ fixed cost that is amounting to 40,000.00 includes all his expenses for the rent, wages, basic needs and others. ₱ So even if Junedyl will not be able to sell, he is still obliged to pay this amount. If it costs Junedyl an average of 10.00 for every cup of coffee which is allotted…Question 10 An increate in Fixed Cost per unit maybe attributed with decrease in production. A. True B. False
- ____ 36. In contrast to the total product and variable cost concepts used in setting seller's prices, the target cost approach assumes that: a. a markup is added to total cost b. selling price is set by the marketplace c. a markup is added to variable cost d. a markup is added to product cost ____ 37. The profit margin for Division E is 28% and the investment turnover is 2.8. What is the rate of return on investment for Division E? a. 20% b. 28% c. 14% d. 78.4% ____ 38. If variable costs per unit decreased because of a decrease in utility rates, the break-even point would: a. decrease b. increase c. remain the same d. increase or decrease, depending upon the percentage increase in utility rates ____ 39. Nevitt Corp.’s static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of…If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in total fixed costs b. total sales revenue will exceed total variable costs total sales revenue will exceed total fixed costs dthere will be a profit e None of the given answersEncircle the followings: Which of the following is a definition of break-even point?a) The difference between the selling price of a product and the variable costs incurred in producing that productb) The fixed plus variable costs of the businessc) The situation where neither a profit nor a loss is maded) The situation where a profit is made If the contribution per unit is $25 and the breakeven point is 80,000 units. Which of the following statements could NOT be true? (Show Calculation) a) The selling price per unit is $55 and the variable cost per unit is $30b) The fixed costs are $2,000,000c) To make a profit of $300,000, 92,000 units would have to be soldd) To make a profit of $500,000, 95,000 units would have to be sold Which of the following is not an underlying assumption of break-even analysis?a) Costs can easily be divided into fixed and variable.b) Fixed costs remain static over a relevant range.c) The unit selling price will remain constant throughout the relevant…
- 9. Assuming the management chooses the first option, which amount the product lines will be eliminated?a. La-Lisab. Jenniec. Jisood. Rose_____ 10. Assuming the management chooses to discontinue the unprofitable product line, what is the net impact to the Company’s overall profit?a. P 7,000b. P 17,000c. P 13,000d. P 23,00025. Which of the following costs has no relationship with the level of output?a) Semi-variable costs.b) Variable costs. c) Stepped fixed costs. d) Fixed costs.