sde• The most likely strategy to reduce the break-even point should be to1. Increase fixed costs2. Decrease selling price3. Increase variable costs4. Increase selling priceO 1O 2O 3O 4Question 20• In break-even analysis, which of the following is not an assumption over the relevant range1. Unit selling price are constant2. Unit variable costs are constant3. Total costs are constant4. Total fixed costs are constantO 1O 2O 304MacBook Pro

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Answered: •The most likely strategy to reduce the…

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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(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.
Discuss possible strategies of the company to decrease breakeven point, Contribution margin, and increase profitability without increasing the selling price per unit.
A firm can reduce its breakeven volume by: decreasing fixed costs. B) decreasing contribution margin. Jy C increasing variable costs. lowering selling price.
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When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually assumed to change .b Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point .C Making changes to the sales mix will likely cause no change in the breakeven point .d Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product .e Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin أخل اختیاری
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Q)Briefly explain whether the following statements is true or false In the Solow model, it is possible that a higher saving rate can reduce consumption in both the short run and the long run.
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
1. If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), Using Break Even Analysis, provide a unique mathematical example to support the break even point decreasing
When performing sales mix analysis, which one of the following is true: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product. O c. The sales mix is usually assumed to change. O d. Making changes to the sales mix will likely cause no change in the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin DUS PAGE NEXT PAGE F8 F9 F10 F11 F4 F5 F6 F7 F1 F2 F3 * @ 2# % & 1 2 3 6 7 W E T Y F J K A 1. C {V }BYN í M 41 * N
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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.

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•The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2. Decrease selling price 3. Increase variable costs 4. Increase selling price