If a company’s total fixed cost rises by $10,000, which of the following will be true? a. The break-even point will decrease. b. The variable cost ratio will increase. c. The break-even point will be unchanged. d. The variable cost ratio will decrease. e. The contribution margin ratio will be unchanged.

Which of the following is true when referring to fixed costs? I. Fixed costs remain constant in total throughout the relevant range. II. The trend in companies today is toward greater fixed costs relative to variable costs. III. As volume increases, unit fixed cost and total fixed cost will change. IV. Fixed costs increase in total throughout the relevant range. a. II only b. All but IV c. I and II d. All but III e. None of these

How much would be the net effect on the total segment profit if product B is dropped and discontinued?   Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit?   Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?

Each of a company's two product lines has a different contribution margin ratio . If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase