3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be An increase in sales price A decrease in fixed cost An increase in break-even point in units A decrease in break-even point in units
3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be An increase in sales price A decrease in fixed cost An increase in break-even point in units A decrease in break-even point in units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
MATH1A
Third Qestion
![1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will
mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to
$50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?
$1,000,000
$1,030,000
$980,000
$1,050,000
2. Company O has a new product that has the following cost per unit: direct materials - $10, direct labor - $7, and overhead - $3. If the sales manager wants
to achieve a gross margin of 25% of cost for the particular product. What would be the selling price per unit?
$25
$36
$45
$56
3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be
An increase in sales price
A decrease in fixed cost
An increase in break-even point in units
A decrease in break-even point in units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4883ee41-7416-4626-85d5-607dc5df496f%2F3971412e-5d25-4aec-a67a-eea879436e4c%2Ftmhdc2j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will
mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to
$50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?
$1,000,000
$1,030,000
$980,000
$1,050,000
2. Company O has a new product that has the following cost per unit: direct materials - $10, direct labor - $7, and overhead - $3. If the sales manager wants
to achieve a gross margin of 25% of cost for the particular product. What would be the selling price per unit?
$25
$36
$45
$56
3. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be
An increase in sales price
A decrease in fixed cost
An increase in break-even point in units
A decrease in break-even point in units
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