Which of the statements with respect to costs are true a. Fixed costs does not change with the volume. b. Committed costs results in loss of flexibility for the organization c. Variable costs always arises because of committed costs I do not want to answer this Question 1 Statement a is the only true statement Statement A and C are true Statement A and B are true 4 All are true What should be the minimum price increase that will have a zero impact on net profit : Particulars Net Profit Margin Contribution Margin 12% 42% Increase in VC 4% Increase in FC 1% Price Elasticity -0.5 I do not want to answer this Question 5. 14%
Which of the statements with respect to costs are true a. Fixed costs does not change with the volume. b. Committed costs results in loss of flexibility for the organization c. Variable costs always arises because of committed costs I do not want to answer this Question 1 Statement a is the only true statement Statement A and C are true Statement A and B are true 4 All are true What should be the minimum price increase that will have a zero impact on net profit : Particulars Net Profit Margin Contribution Margin 12% 42% Increase in VC 4% Increase in FC 1% Price Elasticity -0.5 I do not want to answer this Question 5. 14%
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.7IP
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Transcribed Image Text:Which of the statements with respect to costs are true
a. Fixed costs does not change with the volume.
b. Committed costs results in loss of flexibility for the organization
c. Variable costs always arises because of committed costs
I do not want to answer this Question
1
Statement a is the only true statement
Statement A and C are true
Statement A and B are true
4
All are true
2
What should be the minimum price increase that will have a zero impact on net profit :
Particulars
Net Profit Margin
Contribution Margin
12%
42%
Increase in VC
4%
Increase in FC
1%
Price Elasticity
-0.5
I do not want to answer this Question
1
5.14%
2
3.34%
3.00%
4
4.14%
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