If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point?     Contribution margin Break-even point A. Increase Decrease B. Decrease Increase C. Unchanged Increase D. Unchanged Unchanged   Multiple Choice   Choice D.   Choice A.   Choice B.   Choice C.

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Formula: Contribution margin per unit = Selling price per unit – Variable cost per unit.…

Q: When should a segment be dropped?     only when the decrease in total contribution margin is less…

A:

Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…

A: Contribution margin = Sales price per unit - Variable cost per unit   Therefore, there is no impact…

Q: contribution margin will decrease if sales remain the same and:

A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding…

A: Cost volume profit analysis - This analysis shows how a change in variable cost and change in fixed…

Q: ariable costs) / Sales b. (Fixed costs + target income) / Sales c. (Fixed costs + target income) /…

A: The answer to the multiple choice questions are give below.

Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

Q: Which of the following statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: Which of the following will result in the increasing the break-even point? O A decrease in the…

A: Break-even point = Fixed costs / Contribution per unit Contribution per unit = Selling price per…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will:…

A: Variable Cost refers to those Cost which are Variable on nature that means they are changed with the…

Q: Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a.…

A: Variable cost: The cost which changes according to the level of activity. These are not fixed in…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…

Q: What is the effect of an increase in variable costs as a percentage of sales onthe contribution…

A: Variable cost refers to the cost which varies according to the volume of produced units. Increase in…

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: 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: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: The contribution margin ratio always increases when the: a. Break-even point increases. b.…

A: Contribution Margin ratio = (Sales Revenue per Unit - Variable Expenses per Unit) / Sales Revenue…

Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…

A: The break-even point is that level of the unit where the company neither incurs any gain nor any…

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: 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: At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: Contribution margin is the difference of sales price per unit and variable cost per unit.

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: A break-even chart has been set up to show the current break-even point. Due to an increase in the…

A: Introduction Break-even point: Break-even point is the point of sales at which total cost is equal…

Q: In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even.…

A: Cost-volume-profit analysis is used inorder to analyse the relation between profits of the entity…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed…

A: Break Even point is a level where Profit is Zero

Q: 14.  If the fixed expenses of a product increase while variable expenses and the selling price…

A: CVP analysis is used widely in cost and management accounting to know the change in costs of the…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

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: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

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: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

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

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

A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…

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

A:

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

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: Which of the following is true of the contribution margin ratio?       a.If the contribution margin…

A: The contribution margin indicates the excess of revenue over its variable cost. It also indicates…

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: When should a segment be dropped?

A: Any Segment will be dropped only when  there is increase in the Net operating income after the…

Q: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…

A: The correct answer is Option C.

Q: At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable…

A: CVP analysis is done to measure the effect of change in the costs or outlays of the entity on its…

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: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

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

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: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…