
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Break-even analysis assumes that:
Multiple Choice
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Total revenue is constant.
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Unit variable expense is constant.
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Selling prices must fall in order to generate more revenue.
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- Helparrow_forward1. 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 decreasingarrow_forwardVariable costs and fixed costs can best be described by which of the following when production levels decrease? Total fixed costs decrease, but fixed costs per unit stay constant. Fixed costs per unit stay constant, but variable costs per unit decrease. Fixed costs per unit increase, but variable costs per unit stay constant. Total variable costs stay constant , but variable costs per unit decrease .arrow_forward
- 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.arrow_forwardIf sales volume increases and all other factors remain constant, then the: O contribution margin ratio will increase. O margin of safety will increase. break-even point will decrease. O net operating income will decrease.arrow_forwardAssuming all other things are the same, selling price per unit must have even point. Select one: O A. remained the same O B. increased O C. increased first, then decreased O D. decreased if there was a decrease in the break-arrow_forward
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