The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the given answers O c. the total fixed costs decrease O d. the selling price per unit decreases O e. the variable cost per unit decreases
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: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…
A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…
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: QUESTION 8 If Nim Com Soup, Inc.'s, variable costs per unit decrease, while selling price per unit…
A: Since, Selling price - Variable Cost = contribution margin
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: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin: This is the difference between sale price and variable cost per unit. This…
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: If the fixed expenses of a product increase while variable expenses and the selling price remain…
A: Break even point is the point at which the original cost equals the market price. It is where…
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: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: When activity volume decreases in the short term, which of the following is true? (hint: some costs…
A: VC per unit remains constant as the total VC changes with direct proportion to the volume of output.…
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: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…
A: Total fixed cost remains same at all level of output.
Q: How does this change in the variable cost per unit affect the break-even chart?
A: Break even point the minimum selling target, an organisation needs to achieve in order to recover…
Q: The break-even point is where total sales equal total variable costs. True B) False
A: Break-even point is the point at which company’s revenues which are earned during the year are equal…
Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…
A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…
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: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…
A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…
Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…
A:
Q: The break-even point occurs when total contribution margin is less than total fixed costs. O Ture O…
A: Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a…
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: 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: 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: 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: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
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: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…
A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio.
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: 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 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: 3. Each of the following would affect the break-even point, except a change in the a. variable costs…
A: A Break-even point is a spot where the aggregate cost and income of a business will become equal.…
Q: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…
A:
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: 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: 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: 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 sales price increases and all other variables are held constant, the break-even point will…
A: Break even point refers to the sales level at which the entity's total revenue equals its total…
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: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…
A: The correct answer is Option 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: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…
A: Break-even point: In the accounting term break-even point is a condition where the income or profit…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: The Break-even point is the point where all the sales generated by the company are equal to the cost…
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 occurs if a company experiences an increase in its fixed costs? Select one: O…
A: Fixed cost indicates the cost which remains constant to a certain level of activity after which the…
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…
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.…
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- 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 marginWhen 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 unitWhen 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
- The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin unit increases c. none of the given answers d. the total fixed costs increase e. the variable cost per unit increasesThe breakeven point increases if : a the variable cost per unit decreases O b . the contribution margin per unit increase O c . the total fixed costs decrease O d none of the given answers O e . the selling price per unit decreasesThe 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
- g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increasesIf the high-low points method is used, the results when compared with those under the method of least squares, are (Variable Cost Per Unit, Total Fixed Costs). the given is a. Equal, Equal b. Higher by P1.26, Lower by P2,850 c. Lower by P1.26, Higher by P2,850 d. Higher by P5 , Lower by P1,500g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the break-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases
- g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the break-even point: (i) Sales volume increases (ii) Total fixed cost decreases (iii) Selling price per unit increases (iv) Variable cost per unit increases1. Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit Contribution Margin Variable Costs ÷ Contribution Margin Percent Variable Costs ÷ Unit Contribution Margin Fixed Costs ÷ Contribution Margin Percent 2. What effect does the increase in fixed costs have on the break-even units? Decrease Increase No-effect None of these choices are correct. 3. If a company decides to increase the selling price of its product, what is its effect on break-even point? Decrease Increase No-effect None of these choices are correct.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