Which of the following is correct? The break-even point occurs when: Select one: a. total variable expenses equal total contribution margin. o b. total profit equals total expenses. O c. None of the given answer is correct.
Q: When should a segment be dropped? only when the decrease in total contribution margin is less…
A:
Q: Which is not true? At break-even point, A. profit equals zero B. gross profit equals operating…
A: Contribution margin is derived by deducting the total variable costs from total revenue earned by…
Q: Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed…
A: Variable Cost change with level of activity Fixed Costs per unit changes when the level of activity…
Q: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…
A: If the contribution margin is equal to the total fixed cost that means it a situation of the…
Q: Which of the following is true about the changes in fixed cost? An increase in production will…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…
A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost 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: Which of the following is not a correct definition of the breakeven point? A.the point where total…
A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…
Q: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…
A:
Q: The break-even point is where total sales equal total variable costs. True B) False
A: Break-even point is the point at which company’s revenues which are earned during the year are equal…
Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…
A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…
Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…
A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…
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: Which of the following statements about CVP analysis is false? a. Operating income calculations in…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :
Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…
A: At break-even point, there is no profit or no loss.
Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…
A: A graphical representation of the relationship between production costs and total sales is shown by…
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: Which of the following statements is false? (You may select more than one answer.)a. Under some…
A: Sunk Cost: It is refers to the cost or the expense that had incurred in the past and can no longer…
Q: Which is the true statement? The CVP income statement shows contribution margin instead of gross…
A: The CVP Income Statement or the Cost- Volume- Profit Income Statement is almost similar to the…
Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…
A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: Which one of the following is not an assumption of CVP analysis? The behavior of costs and…
A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…
Q: The term 'break even' point is defined as when: A. fixed costs equal total revenues B. variable…
A: The formula for calculating the break even point in units: Break Even Point (in Units)=Fixed…
Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…
A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…
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: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…
A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…
Q: PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is…
A: Variable costs are those costs that changes with change in level of activity. Fixed costs are costs…
Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…
A: Net income as per CVP analysis - sales - variable cost = contribution contribution - fixed cost =…
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: Which of the following is true of fixed and variable costs? Volume changes will not change the…
A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…
Q: Which of the following statements about determining the breakeven point is FALSE? a)…
A: The breakeven point is the level of production at which the costs of production equals the revenue…
Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…
A: Differential costing is a technique where differential costs are considered relevant. Differential…
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: 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 statements is correct: A. total fixed cost remain constant while variable…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: What is happening to average costs when marginal cost is greater than average cost at a specific…
A: When marginal cost is greater than average cost (including average variable cost or average total…
Q: The break-even point can be calculated with the following formula: Total fixed expenses / (Variable…
A: Break-even point = Total fixed expenses / (Selling price per unit - Variable cost per unit)
Q: Help4
A: Break-even point for a business is that position for a business where the difference between the…
Q: Which of the following is not an assumption underlying cost-volume-profit analysis?
A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…
Q: Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is…
A: The total cost of production includes the variable costs, fixed costs and mixed costs.
Q: What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs…
A: Cost is referred as the essential part of the business or a company which looks after the costs such…
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…
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- The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a $10.00 increase in its selling price per unit will: Select one: O a. have no effect on the total contribution margin. b. have no effect on the contribution margin ratio. O c. None of the given answers. O d. increase the break-even volume. O e decrease the degree of operating leverage.
- Which of the following is true regarding the contribution margin ratio of a company that produces only a single product? Select one: a. The contribution margin ratio equals the selling price per unit less the variable expense ratio. b. The contribution margin per unit multiplied by the selling price per unit equals the contribution margin ratio. c. None of the given answer is correct. d. As fixed expenses decrease, the contribution margin ratio increases. e. The contribution margin ratio will decline as unit sales decline.Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin RatioCalculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.
- Encircle the followings: Which of the following is a definition of break-even point?a) The difference between the selling price of a product and the variable costs incurred in producing that productb) The fixed plus variable costs of the businessc) The situation where neither a profit nor a loss is maded) The situation where a profit is made If the contribution per unit is $25 and the breakeven point is 80,000 units. Which of the following statements could NOT be true? (Show Calculation) a) The selling price per unit is $55 and the variable cost per unit is $30b) The fixed costs are $2,000,000c) To make a profit of $300,000, 92,000 units would have to be soldd) To make a profit of $500,000, 95,000 units would have to be sold Which of the following is not an underlying assumption of break-even analysis?a) Costs can easily be divided into fixed and variable.b) Fixed costs remain static over a relevant range.c) The unit selling price will remain constant throughout the relevant…Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit…Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.
- Once the break-even point is reached: the contribution margin ratio begins to decrease. the total contribution margin changes from negative to positive. net operating income will increase by the unit contribution margin for each additional item sold. variable expenses will remain constant in total.Please assis with part G only 1. Briefly explain the impact of each of the following scenarios on the break-even point and the margin ofsafety:(i) Increase in sales volume(ii) Increase in total fixed costs(iii) Increase in selling price per unit(iv) Decrease in variable costs per unitFor each of the three independent situations below computes the missing amounts S/No. Sales Variable costs Contribution margin per unit Fixed costs Operating income Units sold 1 ? 120,000 20 ? 25,000 4,000 2 180,000 ? ? 45,000 30,000 5,000 3 600,000 ? 30 150,000 90,000 ?