FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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why does fixed costs remain the same in total dollar amount but increases per unit as the level of activity changes
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- Change in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?arrow_forwardIn the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?arrow_forwardWhat effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?arrow_forward
- As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effectarrow_forwardWithin a relevant range, fixed costs per unit: Group of answer choices Decrease as the level of activity decreases. Decrease as the level of activity increases. Increase as the level of activity increases. Remain the same as the level of activity increases.arrow_forward
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