8.. When performing sales mix analysis, which one of the following is false:O a. Normally the calculation of the breakeven point for multiproduct is more complicatedthan that for a single product.O b. Shifting the sales mix to the product with a lower contribution margin will likely ncreasethe overall contribution marginC. Making changes to the sales mix will likely cause a change in the breakeven pointO d. The sales mix is usually assumed to be remain the same.e. Producing and selling more units of the product with a higher contribution margin wouldlikely decrease the breakeven point

Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

When performing sales mix analysis, which one of the following is false: O a. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. O b. Shifting the sales mix to the product with a lower contribution margin will likely ncreas the overall contribution margin O C. Making changes to the sales mix will likely cause a change in the breakeven point O d. The sales mix is usually assumed to be remain the same. e. Producing and selling more units of the product with a higher contribution margin woul likely decrease the breakeven point

When performing sales mix analysis, which one of the following is false: O a. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. O b. Shifting the sales mix to the product with a lower contribution margin will likely ncreas the overall contribution margin O C. Making changes to the sales mix will likely cause a change in the breakeven point O d. The sales mix is usually assumed to be remain the same. e. Producing and selling more units of the product with a higher contribution margin woul likely decrease the breakeven point

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...

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Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changes
Which of the following is not an assumption underlying cost-volume-profit analysis? a.The break-even point will be passed during the period. b.Total sales and total costs can be represented by straight lines. c.Costs can be accurately divided into fixed and variable components. d.The sales mix is constant.
CVP analysis with multiple products assumes that sales will continue at the same mix of products, expressed in either sales units or sales dollars. This assumption is essential, because a change in the product mix will probably change: Multiple Choice The average variable cost per unit. The average sales price per unit. The weighted-average contribution margin (per unit or ratio). The total fixed cost. The average contribution margin (per unit or ratio).
Which of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.
Which of the following should be used to compute the sales mix so that the break-even computation is meaningful to management in a multiproduct firm? A. The most desirable mix. B. The least desirable mix. C. The expected mix. D. The most profitable mix.
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constant
What is false about cost plus mark-up pricing? a. attempts to apply or allocate fix costs to pricing strategy b. not intuitive c. good example of value-based pricing d. vulnerable to bad sales estimates e. All are correct f. All are incorrect
Which of the following would lead to the breakeven point of a product shifting to the left on a traditional breakeven chart? A An increase in the selling price per unit B An increase in the variable costs of each unit C An increase in the level of fixed costs D A decrease in the selling price per unit
Your 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?
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.
Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
a) Compare and contrast variable cost-plus pricing and target pricing, and indicate the circumstances in which each might be appropriate. b) Compute the selling price based on the compay’s pricing policy and indicate whether the customer’s maximum price is consistent with the company’s pricing policy. c) Assume that further tests have confirmed the product’s useful life, and that SA Berhad wishes to maximise profits by reducing costs. Indicate techniques which could be used to achieve a reduction in the product cost. d) Define Business Process Re-engineering (BPR).