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: a. None of the given answer is correct. b. increase. c. not change. O d. decrease. O e. change but direction cannot be determined.

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

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

Q: A company observed a decrease in the cost per unit. All other things being equal, which of the…

A: The production iincludes of variable and fixed costs.

Q: The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even…

A: breakeven revenue *Contribution margin%=Fixed cost

Q: 13 The break-even in units sold will decrease if there is an increase in which of the following?…

A: The break-even point is the number of units that need to be sold to cover all the fixed and variable…

Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…

A: If Fixed cost decreases remaining constant Break even sales automatically Break even sales reduces…

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

A: The contribution margin decides which product gives more profits to the company. The contribution is…

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…

Q: 2. Consider the production functions given below: a. Suppose that the production function faced by a…

A: The objective of the question is to analyze the production function of a bread producer, determine…

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: Would an increase in variable costs per unit cause a company’s break-even point to increase or…

A: The Breakeven point is that level of sales at which Contribution is equal to Fixed cost. In orher…

Q: If a company has excess capacity, it is contemplating whether a special order should be accepted.…

A: Special order means the new order which the entity can produce within the available production…

Q: 15 The break-even point in unit sales increases when variable expenses do which of the following?…

A: The break-even point in unit sales is the number of units a company needs to sell to cover all its…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…

Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)…

A: Deflationary cost pattern means where prices are falling continuosly.

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…

Q: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…

A: The income is calculated as excess of revenues over expenses.

Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2…

A: The cost pattern represents the trend of the cost price of the products.