Please correct answer and don't use hand rating The lower a firm's break-even point, the lower amount of quantity which needs to be sold in order to reach a profit of zero.True or FalseTrueFalse

The amount of goods or services that a business needs sell to cover all of its costs, both fixed and…

Answered: The lower a firm's break-even point,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11MC: When sales price decreases and all other variables are held constant, the break-even point will...

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Similar questions

6. What will be the impact on a company's profit if sales mix shifts between low margin and high margin products? Explain different possible scenarios.
Suppose a company increases the price of its product and demand hardly declines.which of the following will increase? A) profit margin B) return - on - equity C) taxes D) all the above
Why would a company choose to factor itsreceivables, given that it will get less money than thereceivables are worth?
Would an increase in per-unit selling price cause a company’s break-even point to increase or decrease? Why?
Lowering price does not always increase revenue with increased demand. Besides reducing price, what else can a firm do to stimulate demand for its product?
The operating break-even sales level is not sensitive to which of the following variables? fixed operating costs sales price per unit dividend payments sales commissions expense E
True or false: 1. The use of a dollar breakeven point is important when a firm has more than one product, especially when each product is selling at a different price. 2.
Which of the following statements is true? A In linear break-even analysis, the contribution margin is the difference between the selling price and the average fixed cost. B The Theory of the Business Firm assumes perfect market competition. This means it assumes that the selling price decreases as a firm's production rate increases. C In the Theory of the Business Firm, profits per period are maximized at the production rate at which marginal cost equals average cost. D In the Theory of the Business Firm, profits per period are maximized at the production rate at which average cost is minimized. E All four statements are false.
Assuming everything else constant, which of the following will NOT make net profit margins increase? Decrease in Selling, General, and Administrative expenses. Increase in Research & Development expenses. Decrease Research & Development expenses. Decrease costs of goods sold.
Which of the following is not one of the benefits of breakeven analysis to businesses?A. Determining the lowest selling priceB. Choosing the most profitable product typesC. Determination of firm valueD. Differentiation of fixed variable expensesE. Conducting decline in sales analysis
1. Which action would not lower a company's break-even point? O increase selling prices () reduce variable costs () decrease fixed costs ) sell more units O answer not given O O O OO
If a firm's marginal revenue is smaller than its marginal cost, then the firm should collect additional information before taking any action. increase output to increase profit. keep output the same decrease output to increase profit.

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The lower a firm's break-even point, the lower amount of quantity which needs to be sold in order to reach a profit of zero. True or False True False