When 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
Q: When should a segment be dropped? only when the decrease in total contribution margin is less…
A:
Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…
A: Contribution margin = Sales price per unit - Variable cost per unit Therefore, there is no impact…
Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…
A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…
Q: When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…
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: Fixed costs per unit increase proportionately with increases in volume of activity within the…
A:
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: When variable costs increase and all other variables remain unchanged, the break-even point will:…
A: Variable Cost refers to those Cost which are Variable on nature that means they are changed with the…
Q: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…
A: The correct answer is option (3).
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…
Q: If the fixed expenses of a product increase while variable expenses and the selling price remain…
A: Break even point is the point at which the original cost equals the market price. It is where…
Q: Within the relevant range of activity, variable cost per unit will: O a increase in proportion with…
A: There are two type of main costs in the business. These are fixed costs and variable costs.
Q: When variable costs increase and all other variables remain unchanged, the break-even point will…
A: The break even point is incurred when all the costs are covered by the sales and there is no profit…
Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…
A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…
Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…
A: Fixed cost will change and total cost will remain the same.
Q: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…
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: Cost-Capacity calculation technique takes into account a constant exponent to relate different costs…
A: Sensitivity analysis is financial analysis that determine The potential percent gain or loss in…
Q: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…
A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…
Q: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…
A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.
Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…
A:
Q: The contribution margin increases when revenues remain the same and Variable cost per unit decrease…
A: The contribution margin helps the company in determining the break-even units and selling price.
Q: At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be…
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will…
A:
Q: Variable costs are expenses that ________. a.remain constant on a per-unit basis but change in…
A: Variable costs as the name suggests are those costs which are variable in nature or these costs will…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…
A: Fixed costs are those costs which do not change with change in level of activity. For example,…
Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: If a company increases its fixed cost for product B, then the contribution margin per unit will…
A: Fixed cost is that cost which remains constant at particular level of…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Contribution margin is the difference of sales price per unit and variable cost per unit.
Q: The most likely strategy to reduce the breakeven point would be to fixed costs and contribution…
A: Break-even point is computed to ascertain the revenue/sale units required, for absorption of all the…
Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…
A: Hi student SInce there are multiple questions, we will answer only first question. Since first…
Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
Q: When the level of output increases within the relevant range, _____. a.fixed cost per unit does…
A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…
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: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…
A: Option c is the answer.
Q: When should a segment be dropped?
A: Any Segment will be dropped only when there is increase in the Net operating income after the…
Q: At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable…
A: CVP analysis is done to measure the effect of change in the costs or outlays of the entity on its…
Q: If the total contribution margin increases and fixed costs do not change, then net income can be…
A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…
Q: Which of the following defines variable cost behavior? a. Total cost reaction to increase in…
A: The variable cost is the cost that affects in the direct proportion to the units of activity in…
Q: All else being equal , what happens to the unit contribution margin and the contribution margin…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…
A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…
A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…
Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…
A: Break even point is that point at which business is recovering its fixed costs and variable costs.…
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- When variable costs increase 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 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 ________. Select one: a. remain unchanged b. decrease c. increase d. increase variable costs per unit
- When fixed costs increase and all other variables remain unchanged, the contribution margin will ________.A. remain unchangedB. increaseC. decreaseD. increase variable costs per unitWhen the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the sameWhen the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.
- When variable costs increase and all other variables remain unchanged, the break-even point will ________. a.produce a lower contribution margin b.remain unchanged c.increase d.decreaseThe increase/decrease in variable cost from existing level to the new level is called as __cost. a.Standard b.Marginal c.Fixed d.OpportunityShow how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
- When fixed costs increase and all other variables remain unchanged, the contribution margin will ________.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 variable costs increase and all other variables remain unchanged, the break-even point will: O a. Increase O b. Decrease c. Produce a lower contribution margin Ос. O d. Remain unchanged