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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14MC: When fixed costs increase and all other variables remain unchanged, the contribution margin will A....

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When fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
When variable costs increase and all other variables remain unchanged, the break-even point will ____________________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
4. When the contribution margin per unit increases assuming all other factors remain constant. The effect would be An increase in sales price A decrease in fixed cost An increase in break-even point in units A decrease in break-even point in units O O O
The contribution margin ratio always increases when (you may select more thanone answer):a. Sales increase.b. Fixed costs decrease.c. Total variable costs decrease.d. Variable costs as a percent of sales decrease
The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin unit increases c. none of the given answers d. the total fixed costs increase e. the variable cost per unit increases
Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.
The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin per unit decreases c.none of the given answers d. the selling price per unit increases . e. the total fixed costs increase
If both the fixed costs associated with a product and the variable costs (as apercentage of sales dollars) decrease, what will be the effect on the contribution margin ratio and the break-even point, respectively?a. Decrease, increase.b. Increase, decrease.c. Decrease, decrease.d. Increase, increase.
1. The formula used to calculate the number of units needed in order to earn a target income is a. (Fixed costs + variable costs) / Sales b. (Fixed costs + target income) / Sales c. (Fixed costs + target income) / CM per unit d. (Fixed costs + variable costs) / CM per unit 2. The indifference point is reached when * a. The savings in variable cost is equal to the increase in fixed costs. b. The savings in variable cost is less than the increase in fixed costs. c. The savings in fixed cost is equal to the decrease in variable cost. d. The savings in fixed cost is more than the increase in variable costs.' 3. Which of the following is not an assumption used to prepare a cost-volume-profit graph? * a. Constant sales mix b. Constant cost fluctuations c. Units produced equal units sold d. Liner costs within the relevant range
If total fixed costs decrease while the sale price per unit and the variable cost per unit remain constant, the: a. contribution margin increases b. breakeven point increases c. contribution margin decreases d. breakeven point decreases
g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases
As volume increases, which of the following statements is NOT correct? Variable cost per unit will remain the same. Total variable costs will increase. Total fixed cost will remain the same. Average cost per unit will increase. O