Select the correct statement regarding break-even point analysis.Multiple ChoiceThe break-even point in sales dollars equals total fixed costs divided by contribution margin per unit.An increase in fixed costs causes the break-even point to increase.An increase in contribution margin per unit causes the break-even point in units to increase.A decrease in the variable cost per unit causes the break-even point in units to increase.X

The break-even point is that level of the unit where the company neither incurs any gain nor any…

Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even point in sales dollars equals total fixed costs divided by contribution margin per unit. An increase fixed costs causes the break-even point to increase. An increase contribution margin per unit causes the break-even point in units to increase. A decrease in the variable cost per unit causes the break-even point in units to increase.

Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even point in sales dollars equals total fixed costs divided by contribution margin per unit. An increase fixed costs causes the break-even point to increase. An increase contribution margin per unit causes the break-even point in units to increase. A decrease in the variable cost per unit causes the break-even point in units to increase.

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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6..
Variable costs and fixed costs can best be described by which of the following when production levels decrease? Total fixed costs decrease, but fixed costs per unit stay constant. Fixed costs per unit stay constant, but variable costs per unit decrease. Fixed costs per unit increase, but variable costs per unit stay constant. Total variable costs stay constant , but variable costs per unit decrease .
Break-even analysis assumes over the relevant range that Group of answer choices total variable costs are linear. fixed costs per unit are constant. total variable costs are nonlinear. total revenue is nonlinear.
:Holding other factors constant, a company's contribution margin per unit will increase with All answers given are NOT correct .a O any increase in variable cost per unit .b O .any increase in quantity sold .c O any increase in the selling price per unit .d O increase in its total fixed costs .e O
If sales volume increases and all other factors remain constant, then the: O contribution margin ratio will increase. O margin of safety will increase. break-even point will decrease. O net operating income will decrease.
3. The result of the fixed expenses divided by the unit contribution margin refers to the: * Margin of safety Contribution margin ratio Break-even point in unit sales Break-even point in dollar sales None of the above 4. Which of the following statements is correct concerning the variable expenses per unit within the relevant range? * The variable expenses per unit remain constant as the activity changes The variable expenses per unit increase as the activity increases The variable expenses per unit decrease as the activity increases The variable expenses per unit can O increase or decrease as the activity changes
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 higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase