osts and long-run average costs? Explain the association between return to scale and economies of scale and suggest the potential sources of internal and external economies of scale. Why might firms face diseconomies of scale and

Q: Break-even analysis is concerned with determining  a point at which the company can minimize total…

A: Breakeven analysis is very important done by management and cost accountants of the business. With…

Q: Variable costs within the relevant range for a firm are assumed: A. Not to vary per unit.…

A: Variable costs within the relevant range remains constant per unit but changes in total with the…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…

A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Answer

Q: Hi, can you find pro and cons on this statement? And please explain in detail. Production surpluses…

A: Fluctuating demand  In reaction to shifting economic conditions and consumer spending trends, demand…

Q: Would an increase in variable costs per unit cause a company’s break-even point to increase or…

A: Variable cost is an amount that changes in total in proportion to the volume produced and sold…

Q: What analysis ensures that the income for the firm will cover its variable costs?    a. ratio…

A: Companies need to analyse how many products to sell or how much sales to make in a financial year to…

Q: Firms with relatively high nonfinancial fixed costs are said to have a highdegree of what?

A: DOL (degree of operating leverage) is a multiple that estimates how much a firm's operating income…

Q: Is my explanation correct? When the shit in sales toward the lower contribution margin.  In the…

A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…

Q: Michael Porter argues a firm cannot be at the same time a cost leader and a differentiator. Do…

A:

Q: Which of the following statements is true? A In linear break-even analysis, the contribution margin…

A: As per the linear break-even model, the contribution margin per unit is the difference between the…

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: For an enterprise, when at least one input is held constant while other inputs are increased, there…

A: The question is based on concept to establish relationship between input and change in input with…

Q: A firm with a high degree of operating leverage: " will have a more significant shift in income as…

A: Degree of Operating Leverage is a relation of contribution margin to the net income.  Contribution…

Q: The profit maximizing condition for a purely competitive firm is when. Price elasticity of demand is…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: you are the owner of a firm, and your firm is experiencing "economies of scale" in production. If…

A: Answer: If my firm is experiencing economies of scale, then as I hire more inputs, my output is…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower net…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: Lowering price does not always increase revenue with increased demand. Besides reducing price, what…

A: Reducing prices will not always stimulate demand to the desired extent especially in case of…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: When constrained by some budget or limited sources managers often try to make products which lie in…

Q: Compared to companies that have a cost structure that is mainly comprised of fixed costs, companies…

A: Operating income shows that how revenue leads to growth in operating income. It is a tool to measure…

Q: Firms with a high degree of operating leverage:

A: Degree of operating leverage is a measure that determines the quantum of change in a company's…

Q: Would an increase in per-unit selling price cause a company’s break-even point to increase or…

A: The breakeven point (break-even price) for a trade or investment is determined by comparing an…

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…

A: The output levels achieve highest efficiency and peak profits when marginal revenue is on par or…

Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Consider a situation in which a firm needs to make a decision regarding the resources to allocate…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Operating Leverage = %change in EBIT / % change in sales

Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…

A: Breakeven quantity increases with the following changes:  Increase in amount of fixed costs,…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…

A: Break-even point: In the accounting term break-even point is a condition where the income or profit…

Q: Which of the following create value in an industry? (Select all that apply.) When value capture…

A: Value capture is the procedure for retaining some percentage of value provided through every…

Q: Which of the following statements about operating leverage is false? O a. All of the given answers…

A: Degree of operating leverage means the division of contribution with net income. It means that how…

Q: Which of the following costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: Suppose firms in this economy pay their workers efficiency wages. This practice will likely lead to…

A: Long term market equilibrium is a state where the aggregate demand equals aggregate supply. It is a…

Q: In competitive markets economic profit becomes zero in the long-run. However, it is also possible…

A: Economic profits and losses play a crucial role in the model of perfect competition. The existence…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: Compared to companies that have a cost structure that is mainly comprised of variable costs,…

A: Ans. Mostly companies incur two types of cost - Variable cost or fixed cost. Variable cost changes…

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…

Q: Which of the following is not an assumption of break-even analysis? a. A company is operating within…

A: Break-Even Point:  It is the point of sales at which entity neither earns a profit nor suffers a…