V Ratio can be increased by______. a. Increasing Selling Price without increasing Variable Cost b. Increasing Selling Price with increase in Variable Cost c. Decreasing Selling Price with increase in Variable Cost d.
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: Which of the following is NOT true of variable costing? a. Profits may increase though sales…
A: Variable costing is a concept used in managerial and cost accounting in which the fixed…
Q: A company observed a decrease in the cost per unit All other things being equal, which of the…
A: SOLUTION- 1-You can reduce the unit cost of products by lowering your overhead cost per item. 2- By…
Q: Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is…
A: Option E is the correct answer i.e Cost can be Divided into variable and fixed components.
Q: A company that desires to lower its break-even point should strive to: reduce variable costs.…
A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…
Q: Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select…
A: Answer -The company should lower the prices to raise revenues. Since 0<E(p)<1, demand is…
Q: ariable costs) / Sales b. (Fixed costs + target income) / Sales c. (Fixed costs + target income) /…
A: The answer to the multiple choice questions are give below.
Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…
A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…
Q: Which of the following statements is NOT true about costs per unit within the relevant range?…
A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…
Q: Contribution margin is a. another term for volume in the "cost-volume-profit" analysis b. the same…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Break-even analysis assumes that: Multiple Choice Total revenue is constant. Unit variable expense…
A: Break even point: The point at which there will be no profit or loss for the company. At this…
Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…
A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…
Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…
A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…
Q: When performing sales mix analysis, which one of the following is true: O a. The sales mix is…
A: The sales mix is a formula that specifies how much of each product a company sells in relation to…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Answer
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A:
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: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Break even point is the point of sales where business earns no profit no loss.
Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing. Group of answer…
A: Introduction: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold…
Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…
A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…
Q: 7. The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will…
A:
Q: Help question 28
A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…
Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Margin of Safety(Amount) : Total Revenue-Breakeven point Margin of Safety(Units) : Current Sales…
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A: The break even sales units are the sales where business earns no profit no loss during the period.
Q: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…
Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…
A:
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: Product costs under variable costing are typically: Question 1 options: lower than under…
A: As per the variable costing method, only variable cost is considered as the product cost while in…
Q: In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even.…
A: Cost-volume-profit analysis is used inorder to analyse the relation between profits of the entity…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)
Q: An increase (decrease) in cost of sales due to volume of *
A: Cost of Sales Cost of sales which is described as the cost which are incurred at the time of sales…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: Break even point is total fixed cost divided by contribution margin per unit. So break-even point…
Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Margin of safety: The excess of actual sales over the break-even sales is known as margin of safety.…
Q: If company A has a higher degree of operating leverage than company B, then: Multiple Choice…
A: SOLUTION- Higher fixed costs lead to higher degrees of operating leverage; a higher degree of…
Q: If company A has a higher degree of operating leverage than company B, then: company A is more…
A: OPERATING LEVERAGE IS THE DEGREE TO WHICH A FIRM OR PROJECT CAN INCREASE INCOME BY INCREASING…
Q: On the breakeven graph, the fixed cost line a) moves to the right as fixed cost increase.…
A: SOLUTION- BREAK EVEN GRAPH- IT IS A GRAPH WHICH PLOT TOTAL SALES AND TOTAL COST CURVES OF A COMPANY…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
Q: The contribution margin ratio always increases when (you may select more thanone answer):a. Sales…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: A dollar value increase in a product's selling price per unit accompanied by a similar dollar value…
A: Contribution Margin The Calculation of Contribution Margin Percentage which is calculated by Total…
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: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…
A: Break even point = Fixed costs / Weighted average contribution margin
Q: Which of the following statements is true? a. When production is greater than sales, operating…
A: The question is based on the concept of Cost Accounting.
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit
Q: When sales price increases and all other variables are held constant, the break-even point will…
A: Break even point refers to the sales level at which the entity's total revenue equals its total…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point where unit sold gives no profit or loss to the firm. Beyond Break Even…
Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…
A: Breakeven quantity increases with the following changes: Increase in amount of fixed costs,…
Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…
A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…
Q: Operating profits move in the same direction as sales when variable costing is used if selling…
A: Introduction:- Variable costing varies in respective of units production Which is used for making…
Q: When performing sales mix analysis, which one of the following is false: O a. Normally the…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
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- When the sales price per unit decreases, the contribution margin per unit ________. A. increases proportionately B. increases C. remains the same D DECREASESThe effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not decrease unit sales would be: a. CMR - Increase; BEP - Decrease b. CMR - Decrease; BEP - Decrease c. CMR - Increase; BEP - No effect d. CMR - Decrease; BEP - No effect4. If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in relation to the old variable cost ratio will be a. The same b. Not enough information provided c. Higher d. Higher
- If 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 decreasesIn the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest sales price. (c) replacement cost. (d) average sales price.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 unit
- If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point? Contribution margin Break-even point A. Increase Decrease B. Decrease Increase C. Unchanged Increase D. Unchanged Unchanged Multiple Choice Choice D. Choice A. Choice B. Choice C.Which of the following conditions would cause the break-even point to increase? Oa. total fixed costs decrease Ob. unit selling price increases Oc. total fixed costs increase Od. unit variable cost decreasesOn the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. Decrease in selling price per unit O b. None of the given answers O c. Decrease in fixed costs O d. Decrease in variable cost per unit O e. Increase in number of units sold
- On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answersWhich of the following would lead to the breakeven point of a product shifting to the left on a traditional breakeven chart? A An increase in the selling price per unit B An increase in the variable costs of each unit C An increase in the level of fixed costs D A decrease in the selling price per unitAn increase in variable costs [A] increases p/v ratio [B] increases the profit [C] reduces contribution [D] increases margin of safety
