When sales price decrease and all other variables are held constant the break even point will
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When sales price decrease and all other variables are held constant the break even point will
Break-even point analysis is an important and crucial technique used by cost and management accountant to take important decision regarding selling price for a product through the help of break-even point management can be able to set a target profit for a period.
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- When sales price increases and all other variables are held constant, the break-even point will A. remain unchanged _________________________. B. increase C. decrease D. produce a lower contribution marginWhen sales price decrease in all other variables are held constant though break even point willWhen sales price increases and all other variables are held constant, the break-even point will ________.
- When sales price increases and all other variables are held constant, the break-even point will ________.A. remain unchangedB. increaseC. decreaseD. produce a lower contribution marginhow would an increase in selling price per unit affect the break-even point and the margin of safety?If sales volume increases and all other factors remain constant, then the: O contribution margin ratio will increase. O margin of safety will increase. break-even point will decrease. O net operating income will decrease.
- What will be Abado’s breakeven point in sales dollars ?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 costsAs the variable cost increases but the selling price remains constant, the A. Degree of operating leverage declinesB. Margin of safety stays constantC. Breakeven point goes downD. Contribution margin ratio goes up
- What is the break-even sales increase? Interpret.If sales volume decreases and all other factors remain constant, then the Multiple Choice margin of safety will increase. break-even point will decrease. contribution margin ratio will increase. net operating income will decreaseThe breakeven point increases if : a the variable cost per unit decreases O b . the contribution margin per unit increase O c . the total fixed costs decrease O d none of the given answers O e . the selling price per unit decreases