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 sales price increases and all other variables are held constant, the break-even point will ________.A. remain unchangedB. increaseC. decreaseD. produce a lower contribution marginDiscuss possible strategies of the company to decrease breakeven point, Contribution margin, and increase profitability without increasing the selling price per unit.If fixed costs decrease, which of the following statements is most likely correct? The relevant range has changed. The contribution margin per unit will increase. The volume of sales will increase. The break-even point will increase. Variable costs will increase.
- Assume there is a reduction in the selling price and all other CVP parameters remain constant. This change will: increase contribution margin reduce operating income O reduce fixed costs increase variable costs1. The most likely strategy to reduce the break-even point would be to a. Increase both the fixed costs and the contribution margin. b. Decrease both the fixed costs and the contribution margin. c. Decrease the fixed costs and increase the contribution margin. d. Increase the fixed costs and decrease the contribution margin.A company that desires to lower its break-even point should strive to: reduce variable costs. pursue more than one of the above actions. sell more units. decrease selling prices. increase fixed costs.
- 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 marginWhen 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 marginWhen sales price increases and all other variables are held constant, the break-even point will A. remain unchanged _________________________. B. increase C. decrease D. produce a lower contribution margin
- When sales price decreases and all other variables are held constant, the break-even point will _______________________. A. remain unchanged B. increase C. decrease D. produce a higher contribution marginLowering price does not always increase revenue with increased demand. Besides reducing price, what else can a firm do to stimulate demand for its product?When variable costs increase and all other variables remain unchanged, the break-even point will: a. Decrease b. Produce a lower contribution margin c. Increase d. Remain unchanged