Based on the image below for a manufacturing company, the correct statement is A. line b graphs total fixed costs B. point c represents the point at which the marginal contribution per unit increases C. line d graphs total costs D. area e (between lines b and d) represents the contribution margin

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A:

Q: a) Classify each cost as either variable or fixed with respect to the number of units produced and…

A: Variable costs are those costs which varies with output. It must be noted here that variable cost…

Q: In representing the total manufacturing costs in the equation Y=a+bX, “a ” in the equation…

A: The total manufacturing cost includes the variable and fixed cost of production.

Q: :The change in total cost from producing another unit of output equals the following Average total…

A: The marginal cost of production is the change in total production cost that comes from making or…

Q: Which of the following may form the basis for the price a company (working at full capacity) should…

A: Opportunity costs : The benefit foregone by the company by employing the resource in other…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…

A: Contribution margin:

Q: Which of the following is true of a company that uses absorption costing? Multiple Choice   Net…

A: Absorption costing: Under the absorption costing method, manufacturing costs such as direct material…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit…

A: Fixed costs are those cost which do not change with the change in level of activity.

Q: In the CVP analysis, at the point of breakeven O a. total contribution margin minus total fixed…

A: The break even sales units are the sales where business earns no profit no loss.

Q: For each model, compute the contribution margin per unit.  B. For each model, compute the…

A: A. Contribution margin per unit = Sales revenue - Variable costs Calculate contribution margin per…

Q: What factor related to manufacturing costs causes the difference between operating income computed…

A: Only item which causes the difference between operating income computed using absorption costing and…

Q: In determining cost behavior in business, the cost function is often expressed as Y=a+bX. Which one…

A: There are two types of costs in the business, one is fixed costs and other is variable costs. Fixed…

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: The unit contribution margin is calculated as the difference between: a. selling price and fixed…

A: 1) Option B is correct i.e.  selling price and variable cost per unit. Reason :- Unit contribution…

Q: a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the…

A: The difference between the sales revenue and the variable costs is called the contribution. It is…

Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…

A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: Under the contribution income statement, a company's contribution margin will be higher if? A…

A: Contribution is the excess of the sales revenue generated during the year over the variable cost…

Q: In representing the total manufacturing costs in the equation Y=a+bX, “a ” in the equation…

A: The total cost of product is the total of fixed cost and variable cost.

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Profit per unit = $ 4 Quantity = 11,700  Units   Therefore        Gross profit = Profit per…

Q: Which of the following may form the basis for the price a company (working at full capacity) should…

A: There are several type of costs that are being incurred in business. These are fixed costs, variable…

Q: Under the contribution income statement, a company's contribution margin will be lower if? Fixed…

A: A break-even point is a point where the company incurs no loss and no profit. The contribution…

Q: a. Compute the unit product cost under both absorption and variable costina b. Prepare an income…

A: Note : Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A: Constraint: Constraint is a factor that limits the production of a product or sale of a product.

Q: If a company increases its fixed cost for product B, then the contribution margin per unit will…

A: Fixed cost is that cost which remains constant at particular level of…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…

A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…

Q: Assume that the average cost function of a company is described by the following equation: AC = 2 x…

A: In this problem for Average Cost [AC] , the formula is given to…

Q: a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the…

A: Following information has been given about the company:   Selling price per unit…

Q: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin is one of the important terms under the Cost Volume Profit analysis.Contribution…

Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per…

A: Intercept is the total fixed cost and slope of cost function is the variable cost per unit. And the…

Q: The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The…

A: Cost behavior: Cost behavior is that the relationship between cost and activity and it's relevant to…

Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…

A: Option c is the answer.

Q: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…

A:

Q: total cost C for a manufacturer during a given time period is a function of the number N of items…

A: Price of widgets= Total Revenue from widgets Total units sold                  p       =RN

Q: For each of the following statements, indicate whether it is true, false, or uncertain. a. A cost is…

A: Total cost is the summation of fixed costs and variable costs incurred in the process of production.…

Q: Theta, Inc., a manufacturing company, has two major activities that drive the selling costs of the…

A: Option d is correct.

Q: If a company chooses a price to charge for its product by adding up all the expenses necessary to…

A: Solution: There are various method of pricing the product such as: 1. Target costing 2. Skimming…

Q: Using the following table a) construct the cost schedule for a firm operating in the short run…

A: A cost involved in producing goods or services may be its fixed cost, variable cost, or mixed cost.…

Q: The high-low method: a. Calculates variable costs per unit by dividing the difference in the high…

A: The high-low method is a method to separate or segregate the fixed and variable cost portions of a…

Q: Uninder Company uses the high-low method to estimate the cost function. The information for 2017 is…

A: Slope coefficient = ( cost at high point - cost at low point) /(Hours at high point - hours at low…

Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…

A: Contribution margin is the difference amount between total sales and total variable costs.

Q: 1. How would a 5% sales commision paid to a sales personnel be classified in a manufacturing…

A: Answer 1:  Sales commission should be classified as Variable Product cost. There are companies which…