What effect does the increase in fixed costs have on the break-even units? 1. Decrease 2. Increase 3. No-effect
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- When 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 marginWhen 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 margin1. 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 costsWhen should a segment be dropped? Group of answer choices 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 costWhich of the following statements is NOT true about costs per unit within the relevant range? Question 7 options: Fixed costs decrease in proportion to increases in volume. Mixed costs decrease but not in direct proportion to increases in volume. Variable costs stay constant with changes in volume. Curvilinear costs stay constant with changes in volume.
- As the level of activity increases, how will a mixed cost behave? a. Increase in total but would decrease per unit b. Increase in total and per unit c. Increase per unit but would increase in total d. None of these e. Decrease in total and per unitWith all other data held constant, an increase in variable costs should do which of the following? Group of answer choices increase breakeven units. have no impact on breakeven units. decrease breakeven units. increase contribution margin per unit.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 cost
- Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.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 increases1. 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 decreasing