When the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the same
Q: When should a segment be dropped? only when the decrease in total contribution margin is less…
A:
Q: Which of the following is correct? The break-even point occurs when: Select one: a. total variable…
A: Break even point is the point where the production level at which the production costs equal to the…
Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…
A: Contribution margin = Sales price per unit - Variable cost per unit Therefore, there is no impact…
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: contribution margin will decrease if sales remain the same and:
A: Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…
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: When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…
Q: When the units manufactured increases, the most significant change in average unit cost will be…
A: When there is increase in the units manufactured, the non-variable cost will be apportioned to more…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution Margin = Sales per unit - Variable cost per unit
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: Which method results in a more realistic amount for income because it matches the most current costs…
A: The current costs is based on the purchasing of the latest products which means the having book…
Q: d) Calculate the Contribution Margin. e) Calculate the Break Even Point (in quantity). f) Calculate…
A: Variable cost vary with the level of output where as fixed cost remain fixed. Total cost will…
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: 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: Within the relevant range of activity, variable cost per unit will: O a increase in proportion with…
A: There are two type of main costs in the business. These are fixed costs and variable costs.
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: 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: Increases in holding cost ________ reorder points. Group of answer choices Decrease Have no effect…
A: Holding costs: Holding costs are the costs of keeping unsold items on hand. These fees, along with…
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: An increase in variable costs [A] increases p/v ratio [B] increases the profit [C] reduces…
A: Contribution Margin = Sales – Variable costs P/V ratio = Contribution/Sales Margin of Safety in…
Q: The contribution margin ratio always increases when the: a. Break-even point increases. b.…
A: Contribution Margin ratio = (Sales Revenue per Unit - Variable Expenses per Unit) / Sales Revenue…
Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…
A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…
Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…
A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…
Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…
A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…
Q: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…
A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.
Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…
A:
Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…
A: Solution- (A) P(o) represents the amount of annual profit allocated when x=0 or when no money was…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…
Q: (D) Find the marginal revenue. (E) Find R' (3,000) and R'(6,000) and interpret these quantities. (F)…
A: Marginal Revenue refers to the extra revenue an organization will make on each extra sale. On the…
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: 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: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…
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: 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: 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: 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: Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put…
A: Answer: The correct option is option (c). The M&O costs are put in the numerator.
Q: 96) Which of the following is correct concerning reactions to INCREASES in activity? Total Variable…
A: The variable costs are associated with the increase or decrease in the production level of the…
Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…
Q: If the total contribution margin increases and fixed costs do not change, then net income can be…
A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…
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: 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: In computing the B/C ratio, is the annual revenue counted as benefits? Please compute the B/C ratio…
A: The B/C ratio is known as the Benefit-Cost ratio. It shows the relationship between the cost and…
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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- When fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution marginWhen variable costs increase and all other variables remain unchanged, the break-even point will ____________________. A. remain unchanged B. increase C. decrease D. produce a lower contribution marginWhen should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable cost
- Which of the following statements is true regarding average fixed costs? A. Average fixed costs per unit remain fixed regardless of level of activity. B. Average fixed costs per unit rise as the level of activity rises. C. Average fixed costs per unit fall as the level of activity rises. D. Average fixed costs per unit cannot be determined.When fixed costs increase and all other variables remain unchanged, the contribution margin will ________.A. remain unchangedB. increaseC. decreaseD. increase variable costs per unitWhen fixed costs increase and all other variables remain unchanged, the contribution margin will ________. Select one: a. remain unchanged b. decrease c. increase d. increase variable costs per unit
- Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the sameWhen the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.When variable costs increase and all other variables remain unchanged, the break-even point will ________. a.produce a lower contribution margin b.remain unchanged c.increase d.decrease
- Fixed cost per unit ______ A. Can be estimated by the high - low method. B. Remains the same when the level of activity changes. C. Are represented by the slope of the total cost line. D. All of the above answers are correct.:Total Fixed costs the level of activity none of the given is correct .a increases with .b does not change at all with .c decreases with .d does not change within a relevant rangeWhat is the result when the contribution margin ratio increases? A. Break-even point increases B. Fixed Cost decreases C. Break-even point decreases D. No effect on break-even points