ot lower a company's break-even poin O increase selling prices O reduce variable costs O decrease fixed costs sell more units answer not given
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: Each of a company's two product lines has a different contribution margin ratio. If the company's…
A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…
Q: XYZ Company wishes to gain more market share . In order to do that , the company is planning to…
A: Variable cost is a cost that remains the same on a per unit basis and varies according to units…
Q: A company that desires to lower its break-even point should strive to: reduce variable costs.…
A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…
Q: Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select…
A: Answer -The company should lower the prices to raise revenues. Since 0<E(p)<1, demand is…
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: Each of a company's two product lines has a different contribution margin ratio. If the company's…
A: The costs when are covered with certain amount of revenue earned, such amount is treated as break…
Q: not lower a company's break-even point?
A: Option A is wrong because an increase in selling price will lower the break-even point. Option B is…
Q: Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: To increase margin of safety, the following measures can be taken O a. Increase the output O b.…
A: The margin of safety is the excess of current sales over break even sales.
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 Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which…
A: Profit :- Profit is the excess amount that we earned after selling a product at a particular price…
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: Company X sells two products: Model A and Model B. The company has a fixed production capacity.…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A:
Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Break even point is the point of sales where business earns no profit no loss.
Q: A decrease in fixed costs will increase the number of units that need to be sold in order to…
A: Step 1 Break even point is that point of level of Production, where the entity is at no profit or no…
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: 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: If a company increases its selling price by $2 per unit due to an increase in its variable labor…
A: Formula: Contribution margin = sales - variable cost Deduction of variable cost from sales value…
Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…
A: XYZ company wishes to gain market share. Current Production doubled means quantity is doubled. Fixed…
Q: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…
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: 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: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…
A: The income is calculated as excess of revenues over expenses.
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: A. What are total variable costs for Morris with their current product mix? Total variable costs $…
A: Break even point in unit sales shows number of units to be sold to come into no profit and no loss…
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: A dollar value increase in a product's selling price per unit accompanied by a similar dollar value…
A: Contribution Margin The Calculation of Contribution Margin Percentage which is calculated by Total…
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: 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: 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: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit
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: Often the most direct route to a business decision is an incremental analysis. What is meant by an…
A: “Hey, since there are multiple questions posted, we will answer first two questions for you. If you…
Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…
A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…
Q: If the percentage change in operating income resulting from a given percentagechange in sales is…
A: Operating Leverage is the % change in EBIT to the % change in sales. It shows how much the EBIT…
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: A company's break-even point will not be increased by: an increase in the variable cost per…
A: Break-Even Point = Fixed Cost / (Selling Price per unit - Variable Cost per unit)
Q: Which of the following costs are always incremental and relevant in decision analysis? a)…
A: Avoidable costs are those costs that can be avoided if some production is stopped or outsourcing of…
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: 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: 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…
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- 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 increaseWhen 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 marginIn a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point.
- A company that desires to lower its break-even point should strive to: reduce variable costs. pursue more than one of the above actions. sell more units. decrease selling prices. increase fixed costs.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 answersWhich of the following costs are always incremental and relevant in decision analysis? a) Opportunity costs and sunk costs b) Avoidable costs and opportunity costs c) Only avoidable costs d) Avoidable costs and sunk costs Which of the following will increase a company's breakeven point? a) reducing its total fixed costs b) increasing the selling price per unit c) increasing variable cost per unit d) increasing contribution margin per unit
- A company can lower its break-even point by any of the following except by: Question 4Answer a. reducing its total fixed expenses b. increasing the selling price per unit c. increasing production d. increasing contribution marginXYZ Company wishes to gain more market share . In order to do that , the company is planning to double the current production and sales quantity . However , due to increase in production capacity , the fixed cost is also expected to double . Assuming that the selling price per unit and the variable cost per unit remain unchanged , what would be the effect on profit ? a. Cannot be determined using the information in the question . b. None of the given answers c. Profit would increase d. Profit would decrease e. Profit would remain unchangedQuestion 2 Which of the following occurs if a company increases its selling price per unit? (Assume that sales volume, variable cost per unit, and total fixed cost remain constant.) The break-even point would increase. O More than one of the answers would occur. O The contribution margin would decrease. O Contribution margin ratio would increase. Net income would decrease,
- Is my explanation correct? When the shit in sales toward the lower contribution margin. In the sales mix, if the shift in sales to a product that has a low contribution margin ratio, the break-even point will increase. In this case, the company will generate more sales; hence, the net operating income will increase. Also, the contribution margin ratio will increase. Moreover, the degree of operating leverage will increase, too. Please explain (True or False) in detail.Lowering price does not always increase revenue with increased demand. Besides reducing price, what else can a firm do to stimulate demand for its product?You decide to increase advertising, you will not change the selling price and variable cost per unit do not change. In this scenario, your breakeven point in units will Group of answer choices: Increase decrease stay the same the answer cannot be determined from the given information