What is the major benefit of Breakeven Analysis? AB A. B. C. OP D. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and prices of your products will have on profitability. It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost.
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- A decrease in fixed costs will increase the number of units that need to be sold in order to breakeven. Group of answer choices True FalseIf 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 youYou decide to increase advertising, you will not change the selling price and variable cost per unit do not change. In this scenario, your breakeven point in units will Group of answer choices: Increase decrease stay the same the answer cannot be determined from the given information
- Which of the following costs are always incremental and relevant in decision analysis? a) Opportunity costs and sunk costs b) Avoidable costs and opportunity costs c) Only avoidable costs d) Avoidable costs and sunk costs Which of the following will increase a company's breakeven point? a) reducing its total fixed costs b) increasing the selling price per unit c) increasing variable cost per unit d) increasing contribution margin per unitA company that desires to lower its break-even point should strive to: reduce variable costs. pursue more than one of the above actions. sell more units. decrease selling prices. increase fixed costs.If Account Based Costing (ABC) is so great, why do such a small percentage of companies use it? Why do many companies give up after implementing it and what has to happen in order for companies to be successful using ABC? What type of buy in do we have to see? Who is a great candidate? Also, what are ABC's limitations?
- When deciding whether we should add or drop a product or segment, we should think about Multiple Choice the product's or segment's traceable costs the impact of dropping the existing product or segment on the remaining products' or segments' sales all of the above are true whether the freed up capacity (from dropping a product or segment) will bring us additional revenueYour team is conducting a CVP analysis for a new product. Different sales projections have different incomes. One member suggests picking numbers yielding favorable income because any estimate is “as good as any other.” Another member suggests dropping unfavorable data points for cost estimation. What do you do?With the aid of computer software, managers can vary assumptions regardingselling prices, costs, and volume and can immediately see the effects of eachchange on the break-even point and profit. Such an analysis is called A. “What if” or sensitivity analysis.B. Vary the data analysis.C. Computer aided analysis.D. Data gathering.
- The line that begins at the origin on a CVP graph represents total expenses. total fixed expenses. total sales revenues. both the total expenses and the total sales revenues. Which of the following best describes the concept of a "constraint?" Expected future costs that differ among alternatives. None of the items in this list of answers. A benefit foregone by choosing one alternative course over another. The distribution of all products to be sold.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 constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.