When sales volume increases, which company will experience a larger percentage increase in profit: company X, which has mostly fixed expenses, or company Y, which has mostly variable expenses?

Q: During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in…

A: Break even point is the point of sales level where company will incur no loss or no profit which…

Q: contribution margin will decrease if sales remain the same and:

A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: If a company decreases the variable expense per unit while increasing the total fixed expenses, the…

A: Breakeven Point: The breakeven point is the level of creation at which the costs of creation are…

Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…

A: Inventory can be valued under any of three methods. They are 1.FIFO 2. LIFO 3.Weighted average…

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the…

Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…

A: Cost volume profit analysis: It can be defined as the technique of accounting that is used by the…

Q: Segment Contribution Margin Analysis The operating revenues of the three largest business segments…

A: a) Compute the contribution margin and the contribution margin ratio:

Q: Explain what the significance of having a high/low Price-to-Book ratio means about the company's

A: Price/Book value is ratio of stock price in actual market and book value is value of share as books…

Q: Does an increase in the operating profitability ratio always causean increase in the value of…

A: Answer: Usually, company’s operating profitability ratio’s measure how far management will strive to…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Answer

Q: a) What is Siam Square's return on sales ratio and when compared to its competitors how is Siam…

A: Return on sales is the measure of profits earned by the company. It is also called operating profit…

Q: Show with a formula that describes the average estimatesustainable sales growth. Then, make a clear…

A: Sustainable growth means Growth for the future customers such as petroleum industries advertise…

Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…

A: Solution- (A)  P(o) represents the amount of annual profit allocated when x=0 or when no money was…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

Q: If there is an unplanned increase in inventories, aggregate planned expenditure is less than real…

A: Aggregate planned expenditure is the sum of the expenditure incurred on the consumption, planned…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: which of the following statement is true

Q: Please select the option that best analyzes the PROFIT MARGIN for our example company.   The profit…

A: Profit margin is the percentage of sales, which explains how much profit a firm can earn for…

Q: In all respects, Company A and Company B are identical except that Company A’s costs are mostly…

A:

Q: Assuming Mando Company has excess capacity, the effect on profits of accepting the order would be an…

A: Special order decision refers to all those decisions or situation of the management in which they…

Q: A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Suppose sales volume increase by the same percentage for Company X and Company Y.  Use CVP analysis…

A: Cost volume profit (CVP) analysis is the one which is helpful in analyzing the costs and profits of…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: the following best explains the difference between the two points on the graph? * Q O The area of…

A: The cost volume profit analysis is performed to represent the effect of different cost on Income and…

Q: Is there a point in a cost-volume-profit analysis when the company is expected to profit?

A: Is there a point in a cost-volume-profit analysis when the company is expected to profit? Answer:…

Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…

A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…

Q: 15 - If a company's EBIT margin is increasing while its net profit margin is decreasing, which of…

A: EBIT: It is the number of earnings before interest and tax of the organization. It includes all the…

Q: 6- If a company's EBIT margin is increasing while its net profit margin is decreasing, which of the…

A: First we need to define both terms so that we can answer this question. Earning Before Interest and…

Q: What concept relates to the proportionate savings in costs gained when levels of production are…

A: Lets understand the meaning of all the terms given in the question. Accounting profit is a terms…

Q: Would an increase in per-unit selling price cause a company’s break-even point to increase or…

A: The breakeven point (break-even price) for a trade or investment is determined by comparing an…

Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…

A: The output levels achieve highest efficiency and peak profits when marginal revenue is on par or…

Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Observe the net income for both companies. Which company is more profitable? Which company is more…

A: Net income is defined as gross profit minus any other expenses and costs, as well as any other…

Q: A company's break-even point will  not be changed by:

A: Break-even point i Break-even point is a level of activity where no profit is gained and no loss…

Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…

A: Breakeven quantity increases with the following changes:  Increase in amount of fixed costs,…

Q: Which of the following is true regarding the contribution margin ratio of a single product company?

A: Contribution Margin: It is defined as the difference between the sales and the variable cost.…

Q: The amount by which a company's sales can decline before losses are incurred is called the: degree…

A: Cost-Volume-Profit (CVP) analysis is a management tool which establishes the relationship between…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: The Break-even point is the point where all the sales generated by the company are equal to the cost…

Q: Change in operating income = change in sales dollars x contribution margin What is the equation for…

A: The Sales, Contribution Margin, Variable costs are the components of CVP Analysis. The analysis is…

Q: A higher gross margin implies ______________ . The company has huge market share The company has…

A: Solution Concept Gross margin is mathematically expressed as =gross profit / revenue When the…

Q: During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed…

A: The contribution margin is calculated by deducting the variable expenses from the sales revenues of…