The margin of safety is the excess of: O Break-even sales over expected sales. O Expected sales over variable costs. O Expected sales over fixed costs. O Fixed costs over expected sales. O Expected sales over break-even sales.
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- g) Briefly explain the impact of each of the following scenarios on the break-even point and the margin of Safety: (i) Increase in sales volume (ii) Increase in total fixed costs (iii) Increase in selling price per unit (iv) Decrease in variable costs per unitQuestion 7:How is the break-even point calculated?a. Fixed Costs / Contribution Margin Ratiob. Sales / Variable Costsc. Variable Costs / Salesd. Fixed Costs / Selling Price per UnitPlease assis with part G only 1. Briefly explain the impact of each of the following scenarios on the break-even point and the margin ofsafety:(i) Increase in sales volume(ii) Increase in total fixed costs(iii) Increase in selling price per unit(iv) Decrease in variable costs per unit
- 35. One of the major assumptions limiting the reliability of break-even analysis is that Group of answer choices A. unit variable costs and total fixed costs will vary directly with the change in units sold. B. There is a relevant range in which the various relationships are true for a given period of time. C. productive efficiency will increase as more units are produced. D. Changes in inventory are significant in amount.1. 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.Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
- 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 increasesg) 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 increasesBriefly explain the impact of each of the following scenarios on the break-even point and the margin of safety: Increase in sales volume Increase in total fixed costs Increase in selling price per unit Decrease in variable costs per unit
- 14. 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 A. Choice C. Choice B. Choice D.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 increasesWhich of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. Margin of safety measures the difference between budgeted revenues and breakeven revenues. none of the given answers is false. O d. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. If only the fixed costs decrease but the number of units sold and unit selling price and all constant, the margin of safety decreases.