ion 1If a company increases its seling price by $2 per unit due to an increasein its variable labor cost of $2 per unit, the break-even point in units will:eteredced out of 1Select one:ag questionO a. increase.o b. None of the given answers .cormedi.O c not changeO d. change bur direction sanner be deter migede. decreaseTime left 0:27:08Jestion 2Sing price of OMR 23 per unit and anMoon company has an averOMR 150.00018:08ot vetaveragevariable HAE G 9) ENG23/11/202015

Answer: Correct Option is C i.e. No change. Break even point in Units will not Change.

If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will: Select one: O a. increase. o b. None of the given answer is corect. O c not change. O d change but direction cannot be determiged. O e. decrease. 0:27:08

If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will: Select one: O a. increase. o b. None of the given answer is corect. O c not change. O d change but direction cannot be determiged. O e. decrease. 0:27:08

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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Which of the following would produce no change in the contribution margin per unit? Select one: a. A 14% increase in variable cost. b.A 7% increase in selling price. CA 15% decrease in selling price. d. None of the given of answers. A 23% increase in the number of units sold.
If a company decides to increase its selling price by $4 per unit because of an increase in its variable labor cost of $4 per unit, what impact will these two changes have on the break-even volume in units?
Holding other factors constant, a company's contribution margin per unit will increase with: O a. any decrease in quantity sold. O b. increase in its total fixed costs c. O c. any decrease in the selling price per unit O d. any increase in variable cost per unit O e. None answers given are correct. 14:0 nere to search W A a 10) ENG 15-04-2 prt sc delete home end $ 96 & 6. num 8. + backspace lock V E T P home D F J K enter pause C 1 shift end alt ctrl
Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model with a negative product margin. What are the alternatives? Which alternative is more cost effective and by how much? (Assume that any traceable fixed costs can be avoided.) Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_3 to operating income 3. What if Reshier Company can only avoid 182 hours of engineering time and 4,800 hours of setup time that are attributable to Model 1? How does that affect the alternatives presented in Requirement 2? Which alternative is more cost effective and by how much? Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_5 to operating income
Time left 0:25 Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the lower contribution ratio, which of the following is false? a. the breakeven point will increase. b. operating income will increase. С. Fixed cost will be constant. d. all of the answers are true. e. the average contribution margin ratio will decrease. On the cost-volume-profit graph, the area between the total cost line and the sales line before the break even point represents: a. The variable cost amount b. The contribution margin per unit
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Before a company reaches the breakeven point Select one: O-a. The fixed cost 1s egual to zero O b. Total fixed costs are increasing Oc The total contribution margin is lower than totalfixed costs O d. The total contribution margin is negative Oe The contribution margin per unit is higher than the fixed costs per unit
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