rent Attempt in &rogressIf a company sells multiple products, at any level of units sold, net income will be higher ifO more fixed expenses are incurred.O more lower contribution margin units are sold than higher contribution margin units.Oweighted-average unit contribution margin decreases.O more higher contribution margin units are sold than lower contribution margin units.

The income statement is one of the important financial statements of the business. Using…

Answered: If a company sells multiple products,…

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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All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a $10.00 increase in its selling price per unit will: Select one: a. have no effect on the contribution margin ratio. b. None of the given answers. c. increase the break-even volume. d. decrease the total contribution margin. e. decrease the degree of operating leverage. O
For CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.
Which of the following equations is true? Multiple Choice Dollar sales for company to break even (Traceable fixed expenses Common fixed expenses) + Overall contribution margin (CM) ratio Dollar sales for company to break even - (Traceable fixed expenses-Common fixed expenses) Overall contribution margin (CM) ratio Dollar sales for company to break even (Traceable variable expenses Traceable fixed expenses) Overall contribution margin (CM) ratio Dollar sales for company to break even (Traceable variable expenses-Common fixed expenses) Overall contribution margin (CM) ratio.
The contribution margin income statementa. reports expenses based on cost behavior pattern rather than cost function.b. unitizes fixed costs.c. shows contribution margin rather than operating income as the bottom line.d. is sometimes used for financial reporting purposes.e. none of the above.Use the following information for Questions 9 and 10.O’Brien, Inc.’s, 2013 contribution margin income statement shows thefollowing:Sales @ $10 per unit . . . . . . . . . . . . . $ 160,000Less: Variable expense . . . . . . . . . . . (128,000)Contribution margin. . . . . . . . . . . . . . $ 32,000Less: Fixed expenses . . . . . . . . . . . . (44,000)Operating income (loss) . . . . . . . . . . . $ (12,000)
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6. Once the break-even point is reached, which of the following statements is true? A) Variable expenses will remain constant in total. The contribution margin ratio begins to decrease. Operating income will increase by the unit contribution margin for each additional B) C) item sold. D) The total contribution margin changes from negative to positive. 7. The break-even in units sold will decrease if there is an increase in which of the following? A) Total fixed expenses. B) Selling price. C) Unit sales volume. D) Unit variable expenses. 8. Which of the following is normally included in product cost under the variable costing method? A) Prime cost and all conversion cost. B) Direct materials cost, direct labour cost, but not manufacturing overhead cost. Direct materials cost, direct labour cost, and variable manufacturing overhead cost. C) D) Prime cost but not conversion cost. 9. Regarding job-order costing and process costing: A) Job-order costing is better in the long run B) Are both…
Please help me with this accounting homework question, I am having so much trouble.
On the cost-volume-profit graph, which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged)? а. Decrease in selling price per unit O b. None of the given answers С. Decrease in number of units sold d. Decrease in variable cost per unit е. Increase in fixed costs
Discuss possible strategies of the company to decrease breakeven point, Contribution margin, and increase profitability without increasing the selling price per unit.
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
Calculate the Break-Even Sales Amount and Sales Amount of Company X with the attached P&L (Profit & Loss) table? -Analyze and interpret X Business Sales Price (Unit) Total Sales Quantity (units) Total Sales Amount (s*unit prc.) Variable Cost (units) Total Variable Cost (b.x) Contribution Margin Total Fixed Costs P/L (Profit/Loss) Profit Margin Contribution Margin (s-b) Contribution Margin Ratio (s-b) / s 100TL / Brm. 20.000,00 2.000.000,00 75,00 1.500.000,00 500.000,00 150.000,00 350.000,00 ? 25,00 25,00% Breakeven Point (Sales Unit) (a/KP) ? Breakeven Point (Sales Amount ?
Sometimes management prefers that the break-even point be expressed in sales dollars rather than units. This can be accomplished by using the contribution margin per unit Select one: O True O False

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