Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit Contribution Margin Variable Costs ÷ Contribution Margin Percent Variable Costs ÷ Unit Contribution Margin Fixed Costs ÷ Contribution Margin Percent
Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit Contribution Margin Variable Costs ÷ Contribution Margin Percent Variable Costs ÷ Unit Contribution Margin Fixed Costs ÷ Contribution Margin Percent
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...
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1. Which of the following formulas is used to calculate break-even units?
- Fixed Costs ÷ Unit Contribution Margin
- Variable Costs ÷ Contribution Margin Percent
- Variable Costs ÷ Unit Contribution Margin
- Fixed Costs ÷ Contribution Margin Percent
2. What effect does the increase in fixed costs have on the break-even units?
- Decrease
- Increase
- No-effect
- None of these choices are correct.
3. If a company decides to increase the selling price of its product, what is its effect on break-even point?
- Decrease
- Increase
- No-effect
- None of these choices are correct.
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