If the total contribution margin increases and fixed costs do not change, then net income can be expected to a. decrease by an equal amount. b. increase by an amount equal to the increase in contribution margin times the CM ratio. c. increase by an equal amount. d. none of these.

Q: Which of the following is determined by subtracting all variable costs from the total selling price?…

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

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

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: contribution margin will decrease if sales remain the same and:

A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: Which of the following conditions would cause the break-even point to increase? Oa. total fixed…

A: The break even point the fixed cost of the production of the material is equal to the difference in…

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: Fixed cost per unit of output decreases as volume increases. True or False True False

A: Any organization generally have two types of expenses - Fixed costs and variable costs. Fixed costs…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: Within the relevant range: a.        both total variable costs and total fixed costs will remain…

A: The costs incurred into the production are classified as fixed and variable costs. The variable…

Q: The contribution margin per unit will increase.

A: Fixed costs are costs or expenses in the economics and business sectors that do not alter with…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: The cost-volume-profit (CVP) profit-planning model assumes that over the relevant range of activity:…

A: The objective of the question is to identify the correct assumption of the cost-volume-profit (CVP)…

Q: When the contribution margin is not sufficient to cover fixed expenses: Multiple Choice total profit…

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

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

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: The line that begins at the origin on a CVP graph represents     total expenses.     total fixed…

A: Since you have posted multiple questions , we will do the first one for you. If you want any…

Q: None

A: The contribution margin ratio is an important financial metric that businesses use to figure out how…

Q: When the profitability index is equal to zero, the benefits equal the costs. True False

A: Profitability Index is defined as the ratio between the present value of cash inflow to the present…

Q: When variable costs per unit increases, the gross margin will ceteris paribus. increase O decrease…

A: After deducting all costs directly related to producing the goods or services for sale, a company's…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net…

A: Solution Concept Let us look at the formula used Gross margin     = sales – cost of goods sold Net…

Q: Within the relevant range: Select one: O A. variable cost per unit decreases as production…

A: Within the relevant range: (B) Fixed cost increases as the production decreases. With fewer goods…

Q: When the level of activity decreases, variable costs will:A - increase per unit.B - increase in…

A: Step 1:When the level of activity decreases, variable costs will change as follows: A - Increase per…

Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…

A: Net income as per CVP analysis -  sales - variable cost = contribution  contribution - fixed cost =…

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…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.