yer EweLERD MERSİN ÜNİVERSİT.A company has monthly fixed costs of $36,000. The variable costs are $2.50per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000:units, the company's average cost per unit will be$ 7.00 per unit. O$ 2.50 per unit. O$ 9.50 per unit. O$ 5.60 per unit. O$ 8.25 per unit. OSelect the incorrect statement regarding the relationship between costbehavior and revenueA pure fixed cost structure offers higher potential rewards. OIn a pure variable cost structure, operating leverage is 1 (one).pure variable cost structure offers more security if volume expectations are notEhieved.hp MERSİN ÜNİVERSİT...$95,000 OFairfield Company management has budgeted the following amounts for itsnext fiscal year. If Fairfield Company increases variable expenses by $1 anddecreases fixed expenses by $50,000, how will breakeven sales in units be?affectedTotal fixed expensesSale price per unitVariable expenses per unit$750,000$40$25No change ODecrease by 1,500 unitsDecrease by 7,562 unitsDecrease by 1,900 unitsIncrease by 1,333 units OPrice Company sells its product for $100 per unit. The company's accountantprovided the following cost information. What is the company's break-even.hpHEWLETT-PACKARD

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A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000 :units, the company's average cost per unit will be $7.00 per unit. O $ 2.50 per unit. $ 9.50 per unit. $ 5.60 per unit. O $ 8.25 per unit. O

A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000 :units, the company's average cost per unit will be $7.00 per unit. O $ 2.50 per unit. $ 9.50 per unit. $ 5.60 per unit. O $ 8.25 per unit. O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

yer EweLER
D MERSİN ÜNİVERSİT.
A company has monthly fixed costs of $36,000. The variable costs are $2.50
per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000
:units, the company's average cost per unit will be
$ 7.00 per unit. O
$ 2.50 per unit. O
$ 9.50 per unit. O
$ 5.60 per unit. O
$ 8.25 per unit. O
Select the incorrect statement regarding the relationship between cost
behavior and revenue
A pure fixed cost structure offers higher potential rewards. O
In a pure variable cost structure, operating leverage is 1 (one).
pure variable cost structure offers more security if volume expectations are not
Ehieved.
hp

MERSİN ÜNİVERSİT...
$95,000 O
Fairfield Company management has budgeted the following amounts for its
next fiscal year. If Fairfield Company increases variable expenses by $1 and
decreases fixed expenses by $50,000, how will breakeven sales in units be
?affected
Total fixed expenses
Sale price per unit
Variable expenses per unit
$750,000
$40
$25
No change O
Decrease by 1,500 units
Decrease by 7,562 units
Decrease by 1,900 units
Increase by 1,333 units O
Price Company sells its product for $100 per unit. The company's accountant
provided the following cost information. What is the company's break-even.
hp
HEWLETT-PACKARD

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