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If the fixed cost for a product decrease and the variable cost (as a percentage of 8. peso sales) decrease, what will be the effect on the contribution margin ratio and the break-even point respectively Contribution margin ratio Deceased Break-even point Increased a. Increased Decreased Decreased Increased b. Decreased c. d. Increased

If the fixed cost for a product decrease and the variable cost (as a percentage of 8. peso sales) decrease, what will be the effect on the contribution margin ratio and the break-even point respectively Contribution margin ratio Deceased Break-even point Increased a. Increased Decreased Decreased Increased b. Decreased c. d. Increased

FINANCIAL ACCOUNTING
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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O If the fixed cost for a product decrease and the variable cost (as a percentage of peso sales) decrease, what will be the effect on the contribution margin ratio and the break-even point respectively Contribution margin ratio Deceased Break-even point a. Increased Increased Decreased Decreased b. C. Decreased d. Increased Increased 10. If the sales mix shifts toward the higher contribution margin products, what would happen to the break-even point a. decreases b. increases c. remains constant d. requires additional information
Transcribed Image Text:O If the fixed cost for a product decrease and the variable cost (as a percentage of peso sales) decrease, what will be the effect on the contribution margin ratio and the break-even point respectively Contribution margin ratio Deceased Break-even point a. Increased Increased Decreased Decreased b. C. Decreased d. Increased Increased 10. If the sales mix shifts toward the higher contribution margin products, what would happen to the break-even point a. decreases b. increases c. remains constant d. requires additional information
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