uestionThe breakeven point increases if:Oa.the selling price per unit increasest yetsweredO b. the total fixed costs decreasearked out ofDOОс.the variable cost per unit decreasesO d.none of the given answersFlagO .the contribution margin per unit increasesestionCLEAR MY CHOICEQuestionOn the cost-volume-profit graph, the area between the total cost line and the sales line after the break-even point represents:O a.The variable cost amountot yetnsweredO b. The contribution margin per unitlarked out ofO C.The loss area00O d. The fixed cost amount* FlagO e. The profit areauestionaP Type here to search

1) D is the correct answer Because The break-even point can increase once the number of fixed prices…

The breakeven point increases if: O a. the selling price per unit increases O b. the total fixed costs decrease the variable cost per unit decreases O d. none of the given answers O e. the contribution margin per unit increases CLEAR MY CHOICE On the cost-volume-profit graph, the area between the total cost line and the sales line after the break-e Thovariablo coct amount

The breakeven point increases if: O a. the selling price per unit increases O b. the total fixed costs decrease the variable cost per unit decreases O d. none of the given answers O e. the contribution margin per unit increases CLEAR MY CHOICE On the cost-volume-profit graph, the area between the total cost line and the sales line after the break-e Thovariablo coct amount

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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The contribution margin ratio is calculated as: a. The selling price per unit ratio /variable cost per unit ratio O b. The selling price per unit /variable cost per unit O c. None of the given answers O d. (total sales/total sales) – variable cost ratio e. Selling price per unit - the variable cost per unit earch hp fs fg f10 10 & 4. 8. V. R Y U G K CO
(7) On the breakeven graph, the fixed cost line a) moves to the right as fixed cost increase. b) decreases with sales volume. c) increases with sales volume. d) remains the same regardless of sales volume.
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On the cost-volume-profit graph, which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged)? а. Decrease in selling price per unit O b. None of the given answers С. Decrease in number of units sold d. Decrease in variable cost per unit е. Increase in fixed costs
O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A
Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some costs vary inversely with volume. Production will equal sales. Costs are linear and continuous over the relevant range. Price will remain fixed.
The break-even point is that level of activity where: Select one: O a. sales revenue eguals fixed cost. O b. variable cost equals fixed cost. Oc total contribution margin equals the sum of variable cost plus fixed cost. O d. sales revenue equals total variable.cost Oe. contribution margin equals fixed cost.
Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.
Analyzi.ng a cost-volume-profit graph Determine each change effects the elements of the cost-volume profit graph by placing an X in the appropriate column(s).
There are two questions, please find the answers
Which of the following is true of fixed and variable costs? Volume changes will not change the relationship between fixed and variable costs. Fixed costs are fixed in total, but vary per unit; variable costs vary in total, but are fixed per unit. As sales increase, the contribution margin percentage increases. O The relationship between sales, variable costs, and the contribution margin does not change when the sales price per unit changes. The contribution margin is what remains after fixed costs have been subtracted from total sales.