When variable costs increase and all other variables remain unchanged, the break-even point will: Оа. Increase O b. Decrease O c. Produce a lower contribution margin O d. Remain unchanged
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Q: When should a segment be dropped?
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A: The correct answer is Option C.
Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…
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- When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unitWhen 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 fixed costs increase and all other variables remain unchanged, the contribution margin will ________. a.remain unchanged b.increase variable costs per unit c.decrease d.increase
- When variable costs increase and all other variables remain unchanged, the break-even point will ________. Select one: a. produce a lower contribution margin b. remain unchanged c. decrease d. increaseWhen 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 unitWhen variable costs increase and all other variables remain unchanged, the break-even point will: a. Decrease b. Produce a lower contribution margin c. Increase d. Remain unchanged
- When the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the sameThe increase/decrease in variable cost from existing level to the new level is called as __cost. a.Standard b.Marginal c.Fixed d.OpportunityThe most likely strategy to reduce the breakeven point would be to fixed costs and contribution margin. A. increase; increaseB. decrease; increaseC. decrease; decreaseD. increase; decrease
- Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O b. FALSEThe 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 decreasesIf 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