2. What effect could be the following changes, occurring independently, have on (1) contribution margin, and (ii) expected profit. G. An increase in production volume.
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- Profitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.Which of the following would be considered as a limiting factor to maximize the profit? O a. Book value O b. Fixed cost Oc. Contribution d. SalesOn a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
- 2. What effect could be the following changes, occurring independently, have on (1) contribution margin, and (ii) expected profit. D. An increase in fixed costs. E. An increase in wages rates applicable to direct, strictly variable labour. F. An increase in the selling price of the product. G. An increase in production volume. AContribution margin is a.the same as sales revenue b.the excess of sales over variable costs c.another term for volume in the "cost-volume-profit" analysis d.profita.Variable costs in the context of cost-volume-profit (CPV) analysis? b. Fixed costs in the context of CPV analysis? c. Contribution margin in the context of CPV analysis?
- 2. What is cost-volume-profit analysis and what are the important assumptions of this analysis?Which of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing productionExplain how a contribution margin income statement can be used to determine profitability.
- What is cost-efficiency according to: 1. Profit Projection 2. Cost estimatesWhat effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?What is the unit volume increase ? What is the x contribution margin per unit ? what is the Increase in profitability?