Explain what a sales mix is and how changes in the sales mix affect the break-even point.

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…

A: Total sales of a company can be divided into Margin of safety sales and break even sales.

Q: What is the formulae to find New sales level?

A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.        or

Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?

A: The analysis for cost, volume and profit in an organization is called Cost-Volume-Profit analysis.…

Q: Assume a company receives an actual return of goods. Which of the following needs to happen? Sales…

A: The return of goods is the amount of goods that were sold to customers but were returned to…

Q: Given that a breakeven sales level is not a sales prediction, explain why it is so widely used in…

A: Break-even sales are the sales at which company earns no profit no loss. In other words, break-even…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: What is the break-even point in unit sales?

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

Q: A decision about one product is said to have ________ effects when a change in the sales of one…

A: A decision about one product is said to have ________ effects when a change in the sales of one…

Q: The break-even point is the sales level at which a company neither earns a profit nor incurs a loss…

A: The break even sales units are calculated as fixed cost divided by contribution margin per unit.

Q: Sales pricing decisions do not usually consider A - total product absorption costs B - costs of…

A: Sales pricing decisions are related to the costs and price related to the entity.

Q: How do you calculate the break-even point of sales?

A: Break even point of sales is the point at which there is no profit or no loss for the business.

Q: culate sales

A: Current month Ending Inventory Will be the next month beginning inventory.

Q: A manager who wants to determine the percentage impact on income of a given percentage change in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

Q: Explain the Sales Comparison Approach?

A: Sales comparison approach is comparative market analysis that compares a property to other…

Q: A shift from low-margin sales to high-margin sales

A: Sales are the amount which the company earns by selling the goods or providing the services during…

Q: How would an increase in sales volume affect the break-even point and the margin of safety

A: Break-Even point :- The break-even point is that the point wherever a company’s revenues equals its…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: WHAT IS THE COST OF SALES?

A: Cost of sales in the business means all costs that are directly incurred for the manufacturing of…

Q: What is the break-even sales increase? Interpret.

A: The company would be defining the sales after considering the estimated revenues. All those revenues…

Q: which one of the following will tend to increase the length of the credit period? Decrease in…

A: The length of credit period is a time duration provided to its consumer to pay back the amount of…

Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False

A: Margin of safety = Actual sales - Break-even sales

Q: An increase (decrease) in cost of sales due to volume of *

A: Cost of Sales Cost of sales which is described as the cost which are incurred at the time of sales…

Q: Explain profit margin on sales

A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…

Q: How would your error affect breakeven sales and operating income under the proposed sales commission…

A: Affect of error on break-even sales and operating income:

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower net…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: Many companies use contra-revenue accounts to describe a reduction in Service Revenue (also Sales…

A: Solution concept The sales account includes the sales made in cash and credit both While calculating…

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: A key factor is one which restricts O The volume of sales The volume of production The volume of…

A: Key factors means those significant factors which can impact a business organisation to a great…

Q: Define and describe the differences between a sales return and a sales allowance

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

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: Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also…

A: Sales mix should be such that the total contribution can be maximised. Which can be done by giving…

Q: Explain the term sales value at splitoff method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: What is the break-even point in sales units? (see attached)

A: Given:

Q: how does the sales mix affect the calculatin of the break even point, what does operating leverage…

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

Q: what is the cost of sales?

A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to…

Q: Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net…

A: Introduction:- Income statement shows company's income and expenses over a  period of time.…

Q: Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales…

A: Solution Given Selling price per unit 25  Less Variable cost per unit (15)…

Q: In the case of decrease the operating cash cycle, which one of the following actions should be…

A: cash flow from operating activities include normal operating of firm.

Q: Why would a company’s manager be concerned about the quantity of its purchases returns if its…

A: Purchase returns means return of merchandise to the suppliers or vendors due to low quality or any…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…

A: Sales mix involves the composition of different products and some products have a higher margin of…