The contribution margin ratio always increases when (you may select more thanone answer):a. Sales increase.b. Fixed costs decrease.c. Total variable costs decrease.d. Variable costs as a percent of sales decrease
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: On the CVP graph, the next unit sold will increase total cost by an amount equal to the Select one:…
A: CVP (Cost Volume Profit) graph shows the connection between the costs incurred in production and…
Q: Contribution margin is
A: Contribution margin is an important term used in cost-volume-profit analysis. It is the excess of…
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: If the fixed cost for a product decrease and the variable cost (as a percentage of 8. peso sales)…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
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: What is characteristic of variable costs within the relevant range? A. Decrease in total as as…
A: Variable costs within the relevant range has following characteristics :- Total variable cost…
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: 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: 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: The unit contribution margin is calculated as the difference between: a. selling price and fixed…
A: 1) Option B is correct i.e. selling price and variable cost per unit. Reason :- Unit contribution…
Q: 4) The break-even point is that level of activity where: A) sales revenue equals total variable…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing 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: 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: 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: 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: ) 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: Which of the following statements is true? a. Both variable and fixed cost change with the change in…
A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…
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: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…
A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…
Q: If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not…
A:
Q: Once the break-even point is reached: the contribution margin ratio begins to decrease. the total…
A: Solution: At breakeven point: Contribution margin = Fixed costs or net operating income is zero.
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: The contribution margin increases when revenues remain the same and Variable cost per unit decrease…
A: The contribution margin helps the company in determining the break-even units and selling price.
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A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…
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: 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: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…
A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…
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: 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: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…
A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…
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 use of fixed costs to extract higher percentage changes in profits as sales activity changes…
A: SOLUTION- DEGREE OF OPERATING LEVERAGE CALCULATES THE PROPORTIONAL CHANGE IN OPERATING INCOME THAT…
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: 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: 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: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…
A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…
Q: All else being equal , what happens to the unit contribution margin and the contribution margin…
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: What is the effect in contribution margin ratio if both selling price and variable costs are…
A: Contribution margin is the sales revenue over and above it's variable costs. Contribution margin…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
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: 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.…
The contribution margin ratio always increases when (you may select more than
one answer):
a. Sales increase.
b. Fixed costs decrease.
c. Total variable costs decrease.
d. Variable costs as a percent of sales decrease
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- When 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 costWhen fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
- When the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the sameWhen fixed costs increase and all other variables remain unchanged, the contribution margin will ________. a.remain unchanged b.increase variable costs per unit c.decrease d.increaseAll else being equal , what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease ? Select one : a . Both unit contribution margin and contribution margin ratio are unchanged . . Both unit contribution margin and contribution margin ratio increase . c . Unit contribution margin increases while contribution margin ratio decreases . d . Unit contribution margin decreases and contribution margin ratio decreases . . None of the given answers .
- Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.If total fixed costs decrease while the sale price per unit and the variable cost per unit remain constant, the: a. contribution margin increases b. breakeven point increases c. contribution margin decreases d. breakeven point decreasesAll else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one: O a. None of the given answers. O b. Both unit contribution margin and contribution margin ratio increase. O c. Unit contribution margin decreases and contribution margin ratio decreases. O d. Both unit contribution margin and contribution margin ratio are unchanged. O e. Unit contribution margin increases while contribution margin ratio decreases.
- When fixed costs increase and all other variables remain unchanged, the contribution margin will ________. Select one: a. remain unchanged b. decrease c. increase d. increase variable costs per unitg) 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 both the fixed costs associated with a product and the variable costs (as apercentage of sales dollars) decrease, what will be the effect on the contribution margin ratio and the break-even point, respectively?a. Decrease, increase.b. Increase, decrease.c. Decrease, decrease.d. Increase, increase.