The most likely strategy to reduce the breakeven point would be to fixed costs and contribution margin. A. increase; increase B. decrease; increase C. decrease; decrease D. increase; decrease

Q: When should a segment be dropped?     only when the decrease in total contribution margin is less…

A:

Q: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

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

A: Fixed costs are costs that do not change with change in level of activity. Variable costs are costs…

Q: Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping…

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: Break-even value using the contribution margin ratio

A: (Since you have posted a multi-part question, we will solve the first three parts for you. For the…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Fixed costs per unit increase proportionately with increases in volume of activity within the…

A:

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: 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: Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: O a. decrease the break-even volume. O b. None of the given answers. O c. have no effect on the…

A: Answer: Option A: Will have no effect in the break-even volume.

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: To increase margin of safety, the following measures can be taken O a. Increase the output O b.…

A: The margin of safety is the excess of current sales over break even sales.

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: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…

A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…

Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…

A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…

A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…

Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…

A: At break-even point, there is no profit or no loss.

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: The break-even point occurs when total contribution margin is less than total fixed costs. O Ture O…

A: Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect 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: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…

A: Break Even Analysis: It is  the point  where  total cost is equal to  revenue  and It  determine the…

Q: A technique used to split mixed costs into fixed and variable costs is called Select one: a. High…

A: The correct option is  b. Behavior analysis method

Q: The term 'break even' point is defined as when: A. fixed costs equal total revenues B. variable…

A: The formula for calculating the break even point in units: Break Even Point (in Units)=Fixed…

Q: The computation for the shutdown point is A. Avoidable fixed costs ÷ unit contribution margin B.…

A: Fixed costs are those that will not change with a change in the activity level. Variable costs are…

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: If fixed costs increase, what would be the impact on the (a) contribution margin?

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

Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…

A: Variable costs: Variable costs are those costs that change in proportion to change in the production…

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: Cos-Volume-Pro fit Graph

A: In the graph, X-axis shows number of units sold and Y-axis shows amount of sales. Line A denotes…

Q: The break-even point in a given situation would be decreased by an increase in a. the CM ratio. b.…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…

A: The total cost of a product can be variable or fixed cost.

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…

A: Break-even point: In the accounting term break-even point is a condition where the income or profit…

Q: If a firm changes its activity level * all costs should change variable costs should change…

A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…

Q: Which of the following costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: •The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2.…

A: Note: Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: Explain how the unit contribution margin can be used todetermine the unit sales required to break…

A: The contribution per unit indicates the value left after deducting the variable cost from the sale…

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: Give an example how manager can decrease variable cost while increasing fixed cost

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…

A: In the question we are required to identify the effect of increase in activity on Total Variable…

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.…

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…

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.