If total fixed costs decrease while the sale price per unit and the variable cost per unit remain constant, the: a. contribution margin increases b. breakeven point increases c. contribution margin decreases d. breakeven point decreases

Q: When the sales price per unit​ decreases, the contribution margin per unit​ ________.   A. increases…

A: Contribution means the difference between the selling price and variable cost . Selling price means…

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

Q: When the volume of production decreases, fixed cost per unit will____ a. Increases b. Constant c.…

A: Fixed cost is indirect cost that incur at all the level of production

Q: . The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c.…

A: The question is related to Marginal Costing and is of cost volume profit analysis.

Q: Which of the following statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: Fixed cost per unit of output decreases as volume increases. True or False True False

A: Any organization generally have two types of expenses - Fixed costs and variable costs. Fixed costs…

Q: Which of the following will result in the increasing the break-even point? O A decrease in the…

A: Break-even point = Fixed costs / Contribution per unit Contribution per unit = Selling price per…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will:…

A: Variable Cost refers to those Cost which are Variable on nature that means they are changed with the…

Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…

A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…

Q: When selling price is constant and variable costs increases. What will be the effect to the net…

A: In the given example, it is assume that selling price is constant in both the cases and variable…

Q: If the fixed expenses of a product increase while variable expenses and the selling price remain…

A: Break even point is the point at which the original cost equals the market price. It is where…

Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…

A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: When activity volume decreases in the short term, which of the following is true? (hint: some costs…

A: VC per unit remains constant as the total VC changes with direct proportion to the volume of output.…

Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…

A: Total fixed cost remains same at all level of output.

Q: Within the relevant range: a.        both total variable costs and total fixed costs will remain…

A: The costs incurred into the production are classified as fixed and variable costs. The variable…

Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…

A:

Q: Once the break-even point is reached: the contribution margin ratio begins to decrease. the total…

A: Solution: At breakeven point:  Contribution margin = Fixed costs or net operating income is zero.

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: Contribution margin is the difference of sales price per unit and variable cost per unit.

Q: If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in…

A: Lets understand the basics. Variable cost ratio is a ratio which indicates the variable cost in…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: When the total fixed costs​ decrease, the contribution margin per unit​ ________.   A. increases…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit   Total fixed cost…

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

Q: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The bteak even sales are the sales where business earns no profit no loss during the period.

Q: The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not…

A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Q: Answer the following: 1.  The slope of line A is equal to the:  a. fixed cost per unit. b. selling…

A: Using fixed cost , total cost and sales revenue, the CVP chart graphically represents the…

Q: Variable costs are costs that:  a) Vary inversely proportional with changes in activity b) Remain…

A: Total variable costs increase with the increase in activity and decrease with the decrease in…

Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…

Q: If total fixed costs increase, while selling price per unit and variable cost per unit remain the…

A: Break even point = fixed cost / ( sales price per unit -variable cost per unit if fixed cost…

Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…

A: The formula for Contribution margin per unit is :  =Sales Revenue per unit - Variable Cost per unit…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: Variable costs are costs that:    A.vary inversely proportional with changes in activity B.Remain…

A: Variable cost :  Variable costs are constant per unit and change in total while fixed costs always…

Q: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…

A: The correct answer is Option C.

Q: The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the…

A:

Q: The break-even point can be calculated with the following formula: Total fixed expenses / (Variable…

A: Break-even point = Total fixed expenses / (Selling price per unit - Variable cost per unit)

Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution Margin per unit refers to the excess value over the variable expenses per unit when…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.