Special order, opportunity cost. In order to determine whether a special order should be accepted at full capacity, the sales price of the special order must be compared to the per unit: a. Contribution margin of the special order. b. Variable cost and contribution margin of the special order. c. Variable cost and contribution margin of the next best alternative. d. Variable cost of current production and the contribution margin of the next best alternative

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: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

Q: :The change in total cost from producing another unit of output equals the following Average total…

A: The marginal cost of production is the change in total production cost that comes from making or…

Q: On the CVP graph, the next unit sold will increase total cost by an amnount equal to the Select one:…

A: CVP analysis refers to the Cost Volume Profit Analysis. In the cost volume Profit analysis the main…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due…

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: . What is the difference between variable and fixed costs? Also explain how the total variable cost…

A: " Since you have posted more than two questions and not specified which should be solved so we are…

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs…

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

Q: a difference in cost-plus pricing and target costing is that target costing starts with the price…

A: Target costing says that first target selling price is calculated, then markup is deducted from…

Q: o decide whether to accept or reject special order, the manager should ensure that the order is…

A: Solution: Special order is the order which is in addition to normal sales to customers. The…

Q: For each model, compute the contribution margin per unit.  B. For each model, compute the…

A: A. Contribution margin per unit = Sales revenue - Variable costs Calculate contribution margin per…

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: For the contribution margin analysis, select a price for each service. Determine the variable cost…

A: Target profit is a profit that the company wishes to obtain by changing certain variables like sales…

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: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: A major factor in evaluating a special order is * O The expected contribution margin on the order. O…

A: There are various factors that affect the decision for a special order.

Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

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: CVP analysis with multiple products assumes that sales will continue at the same mix of products,…

A: When there are multiple products, there is change in the product mix then the weighted average is…

Q: Which of the following formulas is used to calculate break-even point in units? a.Break-even point…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

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: Please define and give formula of the following (if there is any): 1. Absorption costing 2. Activity…

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

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: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Break-even point: The point of sales where the situation of No Profit No Loss comes is called…

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: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: The contribution-margin ratio is:  Select one: a. unit contribution margin divided by the selling…

A: The contribution margin ratio is the % of the sales revenue which is remaining after substracting…

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

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: Which of the following would not be an acceptable way to express contribution margin? * 100% minus…

A: The correct option is fourth. As the formula of dividing variable cost by sales revenue is used for…

Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Variable costs are those costs that change with the change in the activity level. On the other hand,…

Q: In order to draw a basic break-even chart, which of the following information would you not require?…

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

Q: Accepting a special order will improve overall net operating income if the revenue from the special…

A: Variable costs are the costs which change with change in output. Sunk costs are the costs which are…

Q: The break-even point in CVP analysis is defined as the point   1)  where output units equal input…

A: A Break-even point is a level of sales at which there is no profit or loss. Hence, at the break-even…

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 formula for Contribution is Select one: a. Fixed cost + loss b. Sales - Variable cost c. Fixed…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the…

A: Transfer price is the price charged by the transferring division to another division with the same…

Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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

A: Contribution Margin per unit refers to the excess value over the variable expenses per unit when…

Q: Relevant costs for target pricing are​ ________.   A. variable manufacturing costs   B. variable…

A: Relevant costs are the costs which are computed to take pricing decisions. These costs include the…