•The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2. Decrease selling price 3. Increase variable costs 4. Increase selling price
Q: When sales price increases and all other variables are held constant, the break-even point will _
A: Breakeven point means point of sales at which business is covering its fixed costs and variable…
Q: A company that desires to lower its break-even point should strive to: reduce variable costs.…
A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…
Q: Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select…
A: Answer -The company should lower the prices to raise revenues. Since 0<E(p)<1, demand is…
Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…
A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…
Q: :When performing sales mix analysis, which one of the following is true Shifting the sales mix to…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: QUESTION 8 If Nim Com Soup, Inc.'s, variable costs per unit decrease, while selling price per unit…
A: Since, Selling price - Variable Cost = contribution margin
Q: true or false, An increase in total fixed costs lowers the break-even point.
A: Formula: Break even point = Fixed costs / Contribution margin per unit. Contribution margin per unit…
Q: The breakeven point increases if: O a. the selling price per unit increases O b. the total fixed…
A: 1) D is the correct answer Because The break-even point can increase once the number of fixed prices…
Q: When sales price decrease in all other variables are held constant though break even point will
A: Break even point is that revenue point at which business is covering its fixed and variable costs…
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: When variable costs increase and all other variables remain unchanged, the break-even point will…
A: The break even point is incurred when all the costs are covered by the sales and there is no profit…
Q: The break-even point is where total sales equal total variable costs. True B) False
A: Break-even point is the point at which company’s revenues which are earned during the year are equal…
Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Break even point is the point of sales where business earns no profit no loss.
Q: Is my explanation correct? When the shit in sales toward the lower contribution margin. In the…
A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…
Q: Which of the following statements regarding price elasticity is incorrect? a. A product with a…
A: a) In a perfectly inelastic demand the consumers are willing to pay any price for the product and so…
Q: A decrease in fixed costs will increase the number of units that need to be sold in order to…
A: Step 1 Break even point is that point of level of Production, where the entity is at no profit or no…
Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…
A: The break-even point is that level of the unit where the company neither incurs any gain nor any…
Q: 7. The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will…
A:
Q: 1. The most likely strategy to reduce the break-even point would be to a. Increase both the fixed…
A: A Break-even point is a point at which a company is able to cover all its expenses with the present…
Q: If sales volume decreases and all other factors remain constant, then the Multiple Choice margin…
A: Margin of safety = Sales - Break-even sales Break-even point = Fixed cost / Contribution margin…
Q: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…
Q: The most likely strategy to reduce the breakeven point would be to fixed costs and contribution…
A: Break-even point is computed to ascertain the revenue/sale units required, for absorption of all the…
Q: 14. If the fixed expenses of a product increase while variable expenses and the selling price…
A: CVP analysis is used widely in cost and management accounting to know the change in costs of the…
Q: Lowering price does not always increase revenue with increased demand. Besides reducing price, what…
A: Reducing prices will not always stimulate demand to the desired extent especially in case of…
Q: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…
A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…
Q: 3. Each of the following would affect the break-even point, except a change in the a. variable costs…
A: A Break-even point is a spot where the aggregate cost and income of a business will become equal.…
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: The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin…
A:
Q: The contribution margin ratio always increases when (you may select more thanone answer):a. Sales…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
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: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…
A: Break even point = Fixed costs / Weighted average contribution margin
Q: As the variable cost increases but the selling price remains constant, the A. Degree of operating…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: When should a segment be dropped?
A: Any Segment will be dropped only when there is increase in the Net operating income after the…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit
Q: When sales price increases and all other variables are held constant, the break-even point will…
A: Break even point refers to the sales level at which the entity's total revenue equals its total…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point where unit sold gives no profit or loss to the firm. Beyond Break Even…
Q: ot lower a company's break-even poin O increase selling prices O reduce variable costs O decrease…
A: The correct answer is Sell More units.
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: When sales price decrease and all other variables are held constant the break even point will
A: Break-even point analysis is an important and crucial technique used by cost and management…
Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…
A: Formula: Break even point = Fixed cost / Contribution margin. Contribution margin means deduction of…
Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…
A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…
Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…
A: Fixed cost indicates the cost which remains constant to a certain level of activity after which the…
Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…
A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…
Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…
A: Sales mix involves the composition of different products and some products have a higher margin of…
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.…
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- At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable costs O b. Fixed costs will be equal to variable costs C. Sales will be equal to variable costs plus target profit d. Sales will be equal to variable costs minus fixed costs e. Sales will be equal to fixed costs plus zero target profit plus variable costs Clear my choice LU to searchSuppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select both the correct answer to elastic, unit, or inelastic as well as what the company should do to increase revenue. Since 014. If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point? Contribution margin Break-even point A. Increase Decrease B. Decrease Increase C. Unchanged Increase D. Unchanged Unchanged Multiple Choice Choice A. Choice C. Choice B. Choice D.uestion The breakeven point increases if: Oa. the selling price per unit increases t yet swered O b. the total fixed costs decrease arked out of DO Ос. the variable cost per unit decreases O d. none of the given answers Flag O . the contribution margin per unit increases estion CLEAR MY CHOICE Question On the cost-volume-profit graph, the area between the total cost line and the sales line after the break-even point represents: O a. The variable cost amount ot yet nswered O b. The contribution margin per unit larked out of O C. The loss area 00 O d. The fixed cost amount * Flag O e. The profit area uestion a P Type here to search:The breakeven point increases if the contribution margin per unit increases a O the variable cost per unit decreases .b O none of the given answers .c O the selling price per unit increases d O the total fixed costs decrease .e OWhen sales price increases and all other variables are held constant, the break-even point will ________.A. remain unchangedB. increaseC. decreaseD. produce a lower contribution marginAt the breakeven point Select one: Oa Sales will be equal to variable costs plus fixed costs O b. Fixed costs will be equal.contribution margin minus varable costs Oc Fixed costs will be eoual to vanable.costs అTిbe ఇం| Mi. 31500రి910, Oe.Sales vill be equal to variable .costs plus target profitAssume there is a reduction in the selling price and all other CVP parameters remain constant. This change will: increase contribution margin reduce operating income O reduce fixed costs increase variable costs10. I B. What is the major benefit of Breakeven Analysis? A. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and of your products will have on profitability. C It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost. prices 訂The breakeven point increases if : a the variable cost per unit decreases O b . the contribution margin per unit increase O c . the total fixed costs decrease O d none of the given answers O e . the selling price per unit decreasesWhich of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear. Total fixed expenses are constant within the relevant range. Variable costs go down as volume goes up. The selling prices do not change. Volume is the only factor affecting total cost.When output (Q) is increasing in the short run, Marginal Cost will be O decreasing O staying the same O increasing Othere's not enough information to know what is happening to MCSEE MORE QUESTIONS