true or false, An increase in total fixed costs lowers the break-even point.
Q: When should a segment be dropped? only when the decrease in total contribution margin is less…
A:
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Fixed costs are costs that do not change with change in level of activity. Variable costs are costs…
Q: Illustrate a break-even analysis scenario in the resturant industry. Discuss the relevant fixed…
A: A break-even point means where contribution margin of a company is equal to its Fixed Cost.
Q: True or false: The breakeven point in dollars can be computed by dividing the contribution margin…
A: Solution Concept Breakeven point is the point at which the contribution generated covers the fixed…
Q: 22. At the break-even point, fixed cost is aiways a. Equal to the contribution margin h. More than…
A: The Break-even point is the level of operation at which the company is in a no-profit / no loss…
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: “There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you…
A: CVP analysis is always for short term decision making and are always directed for a specified time…
Q: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
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Q: If fixed costs must be incurred during a given period, shouldn't they be expense during that period?…
A: INTRODUCTION Fixed costs are the cost which doesn’t change with the changes in level of production.…
Q: Give an example of how a manager can decrease variable costs while increasing fixed costs?
A: Variable Cost: Variable costs are costs which are directly vary with the change in production.…
Q: Break-even value using the contribution margin ratio
A: (Since you have posted a multi-part question, we will solve the first three parts for you. For the…
Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…
A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…
Q: Would an increase in variable costs per unit cause a company’s break-even point to increase or…
A: Variable cost is an amount that changes in total in proportion to the volume produced and sold…
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: When variable costs increase and all other variables remain unchanged, the break-even point will…
A: The break even point is incurred when all the costs are covered by the sales and there is no profit…
Q: To increase margin of safety, the following measures can be taken O a. Increase the output O b.…
A: The margin of safety is the excess of current sales over break even sales.
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: How would an Increase in total fixed costs affect the break-even point and the margin of safety?
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: A decrease in production will result in an increase in Total Variable Cost True False
A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…
Q: What effect does an increase in volume have on—c. Total fixed costs?
A:
Q: Firms with relatively high nonfinancial fixed costs are said to have a highdegree of what?
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Q: A decrease in fixed costs will increase the number of units that need to be sold in order to…
A: Step 1 Break even point is that point of level of Production, where the entity is at no profit or no…
Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: if the number of units decreases, fixed cost per unit decreases
A: This question is considered as true or false. Fixed Cost: It is a cost which is constant in the…
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: 1. The most likely strategy to reduce the break-even point would be to a. Increase both the fixed…
A: A Break-even point is a point at which a company is able to cover all its expenses with the present…
Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…
A: Fixed cost is the cost that remains constant irrespective of the level of production. A company…
Q: decrease in variable cost
A: Break even point is the level of sales at which an entity begins to generate profit. Break even…
Q: The most likely strategy to reduce the breakeven point would be to fixed costs and contribution…
A: Break-even point is computed to ascertain the revenue/sale units required, for absorption of all the…
Q: “There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you…
A:
Q: When volume of production decreases fixed cost per unit will
A: We know: Fixed Cost remains constant at all levels of production. Fixed cost per unit = Fixed Cost…
Q: In the long run, the long-run average cost curve _____, whereas in the very long run, the long-run…
A: a. none of the above
Q: If fixed costs increase, what would be the impact on the (a) contribution margin?
A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
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: Cos-Volume-Pro fit Graph
A: In the graph, X-axis shows number of units sold and Y-axis shows amount of sales. Line A denotes…
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Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…
A: The total cost of a product can be variable or fixed cost.
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: The break even point is reached at a lower level of activity in the undertaking with a low fixed…
A: Breakeven point is that point at which business is recovering its fixed costs and variable costs…
Q: When production increases, the total fixed cost will
A: Fixed cost is a type of costs which remains fixed irrespective of production levels. Whether…
Q: •The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2.…
A: Note: Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: Explain how the unit contribution margin can be used todetermine the unit sales required to break…
A: The contribution per unit indicates the value left after deducting the variable cost from the sale…
Q: Give an example how manager can decrease variable cost while increasing fixed cost
A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…
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.…
true or false, An increase in total fixed costs lowers the break-even point.
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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 marginExplain how for is possible for costs to change without changing the break-even point.When 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
- What is the result when the contribution margin ratio increases? A. Break-even point increases B. Fixed Cost decreases C. Break-even point decreases D. No effect on break-even pointsWhich of the following is true about the changes in fixed cost? An increase in production will result in an increase in per unit fixed cost. A decrease in fixed cost will result in an increase in variable cost. An increase in production will result in a decrease in per unit fixed cost. A decrease in production will result in an increase in total fixed cost.How would an Increase in total fixed costs affect the break-even point and the margin of safety?
- 1. If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), Using Break Even Analysis, provide a unique mathematical example to support the break even point decreasingWhen variable costs increase and all other variables remain unchanged, the break-even point will ________. a.produce a lower contribution margin b.remain unchanged c.increase d.decreaseThe break even point is reached at a lower level of activity in the undertaking with a low fixed cost. Critically comment on the above statement.
- When should a segment be dropped? only when the decrease in total contribution margin is less than the decrease in fixed cost only when the decrease in total contribution margin is equal to fixed cost only when the increase in total contribution margin is more than the decrease in fixed only when the decrease in total contribution margin is less than the decrease in variable costIf only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), does the breakeven point increase or decrease? Using Break Even Analysis, provide a unique mathematical example to support youWhich 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