2a. In the salary-based compensation scheme, what is the company's break-even point in unit sales? O 30,000 units 13,044 units O 25,000 units O 35,000 units 2b. When the orange line is above the purple line and the gap between these two lines widens its suggests which of the following is true? O The total profit decreases by the contribution margin per unit multiplied by each additional unit sold. The total profit increases by the contribution margin per unit multiplied by each additional unit sold. V The total profit increases by the selling price per unit multiplied by each additional unit sold. The total profit decreases by the selling price per unit multiplied by each additional unit sold. 2c. When the orange line is below the purple line and the gap between these two lines widens its suggests which of the following is true? O The total loss decreases by the selling price per unit multiplied by the decline in unit sales. O The total loss increases by the selling price per unit multiplied by the decline in unit sales. O The total loss decreases by the contribution margin per unit multiplied by the decline in unit sales. The total loss increases by the contribution margin per unit multiplied by the decline in unit sales.
2a. In the salary-based compensation scheme, what is the company's break-even point in unit sales? O 30,000 units 13,044 units O 25,000 units O 35,000 units 2b. When the orange line is above the purple line and the gap between these two lines widens its suggests which of the following is true? O The total profit decreases by the contribution margin per unit multiplied by each additional unit sold. The total profit increases by the contribution margin per unit multiplied by each additional unit sold. V The total profit increases by the selling price per unit multiplied by each additional unit sold. The total profit decreases by the selling price per unit multiplied by each additional unit sold. 2c. When the orange line is below the purple line and the gap between these two lines widens its suggests which of the following is true? O The total loss decreases by the selling price per unit multiplied by the decline in unit sales. O The total loss increases by the selling price per unit multiplied by the decline in unit sales. O The total loss decreases by the contribution margin per unit multiplied by the decline in unit sales. The total loss increases by the contribution margin per unit multiplied by the decline in unit sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2a. In the salary-based compensation scheme, what is the company's break-even point in unit sales?
30,000 units
V 13,044 units
25.000 units
O 35.000 units
2b. When the orange line is above the purple line and the gap between these two lines widens its suggests which of the following is
true?
O The total profit decreases by the contribution margin per unit multiplied by each additional unit sold.
U The total profit increases by the contribution margin per unit multiplied by each additional unit sold.
V The total profit increases by the selling price per unit multiplied by each additional unit sold.
O The total profit decreases by the selling price per unit multiplied by each additional unit sold.
2c. When the orange line is below the purple line and the gap between these two lines widens its suggests which of the following is
true?
The total loss decreases by the selling price per unit multiplied by the decline in unit sales.
O The total loss increases by the selling price per unit multiplied by the decline in unit sales.
The total loss decreases by the contribution margin per unit multiplied by the decline in unit sales.
V The total loss increases by the contribution margin per unit multiplied by the decline in unit sales.
O O O
Transcribed Image Text:CVP Graph Salaries
Description OFixed Expense Sales Total Expense
600K
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OK
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