:Holding other factors constant, a company's contribution margin per unit will increase with All answers given are NOT correct .a O any increase in variable cost per unit b C .any increase in quantity sold .c O any increase in the selling price per unit .d O increase in its total fixed costs .e O

:Holding other factors constant, a company's contribution margin per unit will increase with All answers given are NOT correct .a O any increase in variable cost per unit b C .any increase in quantity sold .c O any increase in the selling price per unit .d O increase in its total fixed costs .e O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

:Holding other factors constant, a company's contribution margin per unit will increase with
All answers given are NOT correct
.a O
any increase in variable cost per unit .b O
.any increase in quantity sold
.c O
any increase in the selling price per unit .d O
increase in its total fixed costs
.e O

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(7) On the breakeven graph, the fixed cost line a) moves to the right as fixed cost increase. b) decreases with sales volume. c) increases with sales volume. d) remains the same regardless of sales volume.
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O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A
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1. 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 decreasing
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