A company increased the selling price for its product from P1.00 to P1.10 a unit when total fixed costs increased from P400,000 to P480,000 and variable cost per unit remained unchanged. How would these changes affect the breakeven point? A. The breakeven point in units would be increased. B. The breakeven point in units would be decreased. C. The breakeven point in units would remain unchanged. D. The effect cannot be determined from the information given.

Q: Many times the selling price of a product p, is related to demand D, according to the relationship…

A: Solution Given demand equation: p=108.5-2.08D0.75=108.5-1.56D Cost equation(TC)= 50,000+ 68D Profit…

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Q: uestion 2 Which of the following occurs if a company increases its selling price per unit? (Assume…

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Q: 5. The contribution nmargin ratio measures the effect on the total contribution margin of a given…

A: Hey there since you have posted multiple questions, we can answer only first three questions, please…

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…

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A: Contribution Margin is the excess of unit selling price on the unit variable costs. Contribution…

Q: s total fixed expenses b. increasing the selling price per unit      c.

A: Breakeven point is the point at which the fixed cost equals contribution margin. Contribution margin…

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A: The costs when are covered with certain amount of revenue earned, such amount is treated as break…

Q: not lower a company's break-even point?

A: Option A is wrong because an increase in selling price will lower the break-even point. Option B is…

Q: All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a…

A: Contribution margin is the excess of selling price per unit over variable cost per unit.

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: Answer

Q: :Holding other factors constant, a company's contribution margin per unit will increase with All…

A: The contribution margin represents the portion of sales that is left after the deduction of variable…

Q: A firm manufactures a product that sells for $16 per unit. Variable cost per unit is $8 and fixed…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.  Variable…

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A: Break even point is the point where there is no profit and no loss.

Q: Management believes it can sell a new product for $6.50. The fixed costs of production are estimated…

A: a )Given that: Selling price= $6.50.  Fixed costs of production= $5,500, and the Variable costs =…

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Q: rice nit of sales nit cost xed cost ariable cost otal cost ales revenue Product A 7.00 300.00 4.50…

A: A useful method for assessing a company's financial health and viability is breakeven sales…

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Q: 7. Answer the following questions, considering each situation independently. You might not be able…

A: Given Profit =$200,000

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A: An increase in sales and variable cost with the same value decreases the contribution margin ratio…

Q: h of the following changes to a company's contribution income statement will  always lower the…

A: It is computed by the formula Sales-variable cost= contribution. As can be seen, by the formula…

Q: ed, hich of the following statements is true? 6. Once the break-even point is A) Variable expenses…

A: The Break-even point is a situation in which there is neither profit nor loss. In other words, this…

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A: (a) Revenue = total units sold * price per unit

Q: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…

A: Contribution margin per unit is the amount remaining with the entity on selling each unit of product…

Q: AA Company produces and sells refrigerator magnets to be sold as novelty items by resorts. Last…

A: Margin of Safety = Actual sales - Break even sales Break-even sales = Fixed costs / Contribution…

Q: Which of the following would produce no change in the contribution margin per unit? Select one: a. A…

A: Contribution margin: It is calculated by subtracting the variable cost from the selling price.