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

Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…

A: Contribution margin = Sales price per unit - Variable cost per unit   Therefore, there is no impact…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: A company observed a decrease in the cost per unit All other things being equal, which of the…

A: SOLUTION- 1-You can reduce the unit cost of products by lowering your overhead cost per item. 2- By…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution Margin = Sales per unit - Variable cost per unit

Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…

A: If Fixed cost decreases remaining constant Break even sales automatically Break even sales reduces…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Which of the following statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Q: true or false, An increase in total fixed costs lowers the break-even point.

A: Formula: Break even point = Fixed costs / Contribution margin per unit. Contribution margin per unit…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: Select the correct statement regarding fixed costs.  A) Because they do not change, fixed costs…

A: Fixed costs are the costs that remain constant irrespective of the volume of production.

Q: 21. If variable selling and administrative costs increased, how would the gross margin and…

A: Variable selling and administrative costs are those selling and admin costs which will be changed…

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

A: Variable cost is an amount that changes in total in proportion to the volume produced and sold…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…

Q: If the fixed expenses of a product increase while variable expenses and the selling price remain…

A: Break even point is the point at which the original cost equals the market price. It is where…

Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…

A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: A decrease in production will result in an increase in Total Variable Cost True False

A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…

Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…

A: Margin of safety is calculated as excess of current sales revenue over break even sales.

Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…

A:

Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…

A: Break even point is the point of sales where business earns no profit no loss.

Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…

A: The break-even point is that level of the unit where the company neither incurs any gain nor any…

Q: If Mazoon Company sells unit outputs below the breakeven point O a. there will be a loss b. total…

A: break even point is a situation where the company will be in a stage of no profit and no loss. Every…

Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…

A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…

Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…

A: The break even sales units are the sales where business earns no profit no loss during the period.

Q: The break-even point occurs when total contribution margin is less than total fixed costs. O Ture O…

A: Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a…

Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: If a company increases its fixed cost for product B, then the contribution margin per unit will…

A: Fixed cost is that cost which remains constant at particular level of…

Q: A break-even chart has been set up to show the current break-even point. Due to an increase in the…

A: Introduction Break-even point: Break-even point is the point of sales at which total cost is equal…

Q: When the total fixed costs​ decrease, the contribution margin per unit​ ________.   A. increases…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit   Total fixed cost…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio.

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

Q: Which of the following statements about margin of safety is false? If the variable cost per unit…

A: Margin of safety can be referred to as the difference between the break even sales and the expected…

Q: In the long run, the long-run average cost curve _____, whereas in the very long run, the long-run…

A: a. none of the above

Q: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…

A:

Q: Within the relevant range, the change in activity level will result in   a. A change in both of…

A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: When should a segment be dropped?

A: Any Segment will be dropped only when  there is increase in the Net operating income after the…

Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…

A: Break-even point: In the accounting term break-even point is a condition where the income or profit…

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

A: Answer

Q: If the total contribution margin increases and fixed costs do not change, then net income can be…

A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…

Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…

A: Fixed cost indicates the cost which remains constant to a certain level of activity after which the…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…

A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.