The Mathematical Equation Method and Contribution Margin Method is a method used to calculate Break-Even Point (BEP) for a single product. Is there any different in the calculated amount of BEP between the two (2) methods? Justify your answer.

The Mathematical Equation Method and Contribution Margin Method is a method used to calculate Break-Even Point (BEP) for a single product. Is there any different in the calculated amount of BEP between the two (2) methods? Justify your answer.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 11DQ: Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. Now...

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Question

C. The Mathematical Equation Method and Contribution Margin Method is a method used to
calculate Break-Even Point (BEP) for a single product. Is there any different in the
calculated amount of BEP between the two (2) methods? Justify your answer.

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Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the contribution margin of a composite unit can be calculated by multiplying fixed costs by the contribution margin ratio of a composite unit can only be calculated when the proportion of products sold is the same for all products can be calculated by multiplying fixed costs by the contribution margin ratio of the most common product in the sales mix
Describe how total variable costs and unit variable costs behave with changes in the level of activity. Describe how total fixed costs and unit fixed costs behave with changes in the level of activity. In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated? How does the sales mix affect the calculation of the break-even point? Cite and give credit to the author that you are citing.
Which of the following is called minimum point of production at which total cost is recovered: Select one:a. Break-even pointb. Fixed costc. Margin of safetyd. Contribution margin
Explain how the unit contribution margin can be used todetermine the unit sales required to break even.
Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the accountant CVP analysis model.C. The Mathematical Equation Method and Contribution Margin Method is a method used to calculate Break-Even Point (BEP) for a single product. Is there any different in the calculated amount of BEP between the two (2) methods? Justify your answer.
In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated? How does the sales mix affect the calculation of the break-even point?
Define the term break-even point. What is the variable cost ratio? The contribution margin ratio? How are the two ratios related? Define the term sales mix. Give an example to support your definition.
The total contribution margin is equivalent to the combined net profit and fixed costs. It can be computed also by adding sales and variable costs. a. Both statements are correct.b. Both statements are false.c. Only the first statement is correct.d. Only the second statement is correct.
Fixed cost per unit ______ A. Can be estimated by the high - low method. B. Remains the same when the level of activity changes. C. Are represented by the slope of the total cost line. D. All of the above answers are correct.
1. Determine the variable cost per unit and the fixed cost using the high-low method.2. What is the equation of the total mixed cost function?
Which of the following is a correct definition of the margin of safety? The excess of contribution margin over fixed costs The excess of gross margin over target income 0 The excess of sales revenue over the breakeven point The excess of ner income over all costs (both variable and fixed
PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange. Cost function is an express that mathematically links costs, their behavior, and their cost driver. As volume decreases within the relevant range, variable cost per unit remains the same andfixed cost per unit increases.