All other things the same, which of the following would be true of the contribution margin and variable costs of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs?   Contribution Margin Variable Costs A. Higher Higher B. Lower Higher C. Higher Lower D. Lower Lower     Option A     Option B     Option C     Option D

Q: Operating leverage predicts the effects of a given fixed cost on operating income when: Group of…

A: The objective of the question is to understand when operating leverage can predict the effects of a…

Q: ssume there is a reduction in the selling price and all other CVP parameters remain constant. This…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: If only the selling price per unit of a product increases (variable cost per unit and total fixed…

A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Q: Variable costs _______  (pick all that apply) Group of answer choices 1) in total, change in direct…

A: Variable costs are the expenditure incurred on production of goods which changes in direct…

Q: Which of the following statements accurately describes the "relevant range?" a. The operation…

A: The relevant range is production range in which fixed costs remain constant. Fixed cost is a cost…

Q: What is the major benefit of Breakeven Analysis? AB A. B. C. OP D. It allows you to know how much…

A: Break-even analysis in economics, business, and cost accounting refers to the point at which total…

Q: Historical cost numbers are usually harder than market value numbers select one :   True, or ,…

A: Historical cost: It is the cost of acquisition or say it is initial cost when customer acquire the…

Q: “Companies should always make and sell all products whose selling prices exceed variable costs.”…

A:

Q: Firms with relatively high nonfinancial fixed costs are said to have a highdegree of what?

A: DOL (degree of operating leverage) is a multiple that estimates how much a firm's operating income…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: The break-even point is that at which: Select one: O A. The level of activity at which the business…

A: Solution:- Break-even point is the point where the total costs of a business are equal to the total…

Q: If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in…

A: CVP investigation takes a goose at the impact of deals volume minor departure from prices and…

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: Henderson Farms reports the following results for the month of November: Sales (10,000 units)…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: A firm can reduce its breakeven volume by: decreasing fixed costs. B) decreasing contribution…

A: The objective of the question is to identify the correct option that can help a firm reduce its…

Q: The profit maximizing condition for a purely competitive firm is when. Price elasticity of demand is…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: When the activity level declines within the relevant range, what should happen with respect to the…

A: The company running its operations incurs both variable costs and also fixed costs. The variable…

Q: Which project would be least sensitive to a change in directly attributable fixed costs if the…

A: The formula to determine the profits is as follows:Profits = Contribution Margin - Fixed CostsSo,…

Q: A firm can reduce its breakeven volume by: decreasing fixed costs. B) decreasing contribution…

A: The objective of the question is to identify the correct option that can help a firm reduce its…

Q: Which of the following statements about operating leverage is NOT true? Group of answer choices…

A: The objective of the question is to identify the incorrect statement about operating leverage among…

Q: Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of The…

A: We have formula,Degree of operating leverage(DOL) = % change in operating income/% change in sales

Q: If total fixed costs increase, while selling price per unit and variable cost per unit remain the…

A: Break even point = fixed cost / ( sales price per unit -variable cost per unit if fixed cost…

Q: Which one of the following statement is not correct? O Both fixed and variable costs influence…

A: The incorrect statement is "opoortunity costs are only considered when resources are limited" This…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.